Sycamore Partners sweetened its offer to buy The Talbots Inc. just slightly — boosting its price to $3.05 a share from the $3 proposed in December — and the companies agreed to negotiate exclusively until May 15.
And even though investors pushed the stock down 6.1 percent to $2.61, apparently out of worry that the price wasn’t enough to entice the board to sell, Sycamore’s continued interest in the chain underscored just how active the deal-making scene is right now.
Also on Monday, Perry Capital took control of Barneys New York in a debt-for-equity swap and Frederick’s of Hollywood Group Inc. posted a “For Sale” sign, saying it received “several inquiries regarding various transactions” and hired investment bank Allen & Co. to consider its options.
“It is an appropriate time to formalize the process,” said Thomas Lynch, Frederick’s chairman and chief executive officer.
Fashion mergers and acquisitions are on the upswing.
There were 62 deals disclosed in the apparel and footwear retail sector globally between Jan. 1 and May 2, carrying a total value of $3.66 billion, according to Dealogic. That’s about the same number of deals seen a year earlier, but just over twice the value.
In many cases, it’s brand names that are attracting interest in the marketplace.
“Buyers have taken the view that the brand identity is high fundamentally,” said John Coyle, partner and head of the New York office of Permira, the private equity firm. “Although oftentimes these are mature brands, they’re also stable and consistent. There’s a bit of opportunity to go after the cost side and then reinvest in pockets of growth.”
Coyle said the market could stay hot until the end of July, when retailers shift into back-to-school and holiday mode.
Marc Cooper, managing director and head of Peter J. Solomon Co.’s retail and apparel practice, added, “You’ll see companies acquiring growing brands to act as another leg of growth to businesses that might not be growing as fast.”
There will also be transactions involving distressed companies, takeovers by firms with better resources to manage a particular business and deals to launch into the digital age, Cooper said, noting that brick-and-mortar retailers are not going to “let the Internet leave them behind.”
Given the number of deals seen over the last week or so, it seems nobody wants to be left behind.
Among those deals: Ascena Retail Group Inc. agreed to acquire Charming Shoppes Inc. stock for $7.35 a piece —an 89 percent premium from Charming Shoppes’ stock price on Nov. 30, the day before the plus-size retailer said it hired Barclays to explore a sale; Collective Brands Inc. reached a $2 billion deal to split up and sell its operations; Marchon Eyewear Inc. acquired sports performance eyewear brand Dragon Alliance; YGM Trading inked a deal to buy Aquascutum Ltd.; the rights to the Fred Segal brand were sold to Sandow Media; Delta Galil Industries Ltd. agreed to acquire Schiesser AG, and Gildan Activewear said it would buy Anvil Holdings Inc.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)