Shares of Chico's FAS (NYSE:CHS) retreated Wednesday on reports that Sycamore Partners has abandoned its takeover attempt of the women's clothing retailer, reported ‘Investors Business Daily’.

The New York-based private equity firm reportedly failed to line up financing for the deal on acceptable terms. On the wake of the ‘Wall Street Journal’ report, Chico's shares dropped 3.4 percent to 17.50 dollars a piece in afternoon trading Wednesday.

On a more positive note, Destination Maternity Corporation (Nasdaq: DEST), announced Wednesday that its Board of Directors has declared a regular quarterly cash dividend of 0.20 dollars per share. The cash dividend will be payable March 27, 2015 to stockholders of record at the close of business on March 6, 2015.

Another big name among American apparel brands being on focus these days is Gap Inc. The San Francisco apparel retail group “has been among the few apparel retailers in the U.S., who have performed very well despite the prevailing weakness in consumer confidence and intense competition from fast-fashion retailers,” stresses Trefis in a report published by ‘Forbes’.

Analysts at Trefis add that “Although it has not reported significant growth in its revenue metrics over the past several quarters, its growth has been positive, unlike several of its counterparts. While the company’s affordable brand Old Navy has consistently grown at a robust paces, it has been offset by under performance of relatively expensive brands, Gap and Banana Republic. Gap Inc’s results will yet again reflect a similar trend when it comes out with its Q4 fiscal 2014 earnings on February 26th.”

In this sense, it is worthy to point out that retailer stated earlier in February that its fourth-quarter comparable sales increased 2 percent year-over-year, doubling the 1 percent growth registered in the same quarter last year. Also growing were comparable sales at Old Navy (+11 percent.)

“Our price estimate for Gap Inc is at 50.51 dollars, implying a premium of over 25 percent to the market price,” announced Trefis in a note to investors.

In Australia, Melbourne independent fashion retailer FAT has closed two stores but has attracted interest from potential buyers after going bust with a debt load believed to be about 4 million Australian dollars, report local media. Trade publications highlight that this is the second time that FAT collapses since 2012.

Administrator David Coyne, of insolvency firm BRI Ferrier, said BRI was continuing to trade the business as it sought a buyer, and had closed FAT's under performing stores at Doncaster and Highpoint: "We're continuing to trade those [remaining four] stores as we seek interest from potential buyers," he said. The remaining stores are in Chadstone, Chapel Street, Fitzroy and the Melbourne CBD.

 

RELATED NEWS

MORE NEWS

 

Latest jobs

 

MOST READ