US women’s wear retailer The Talbots Inc. said that, based on ongoing discussions during the last week, it and private equity firm Sycamore Partners have agreed to extend their exclusivity agreement, while it considers a takeover bid from the private equity firm.
Talks between the two companies which began May 5th had been due to terminate May 15th, but the exclusivity period between the parties on negotiations over Sycamore’s nonbinding proposal has now been extended until 22 May.
Sycamore Partners last week put in a second bid for the retailer, which operates 517 Talbotsstores in the US and Canada. It raised its offer to US$3.05 per share – valuing the company at around $215m. This followed an initial $3.00 per share bid in early December, which the retailer said was”inadequate” and “substantially undervalues the company”.
Talbots has struggled for some time, with fourth-quarter net losses widening to US$53.2m from $2.8m in the same period of the prior year, while sales fell 1.1% to US$289.4m. Full-year net losses reached $111.9m, as sales declined 5.9% to $1.1bn.