Sycamore Partners Will Buy Talbots for 369 million
May 31st, 2012 | 
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Talbots Inc., a retailer and direct marketer of women’s classic clothing, shoes and accessories, said Thursday that it agreed to be acquired by Sycamore Partners for $369 million including debt.
According to sources, Sycamore is Talbots’ second-largest shareholder, which will receive $2.75 per share. In December, Talbots rejected the $3.05 per share previously offered by the private equity firm.
The company operates 580 Talbots brand stores in 46 states, the District of Columbia, and Canada. Online sales represent more than 60 percent of the direct business.
“We are pleased with the value this transaction delivers to our stockholders and believe that this is a positive development for all of our stakeholders,” said Talbots CEO Trudy Sullivan.
“Sycamore Partners is a strong investor with substantial resources and expertise, and we look forward to operating as a private company under their ownership.”
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I have been a good Talbots for many years. I was shocked and dismayed on my recent Talbots visit. Talbots always exemplified a chic but classic look with durable, well constructed garments. This was enhanced by the way Talbot stores were organized and managed. All store displays, marketing and service had a corresponding look.
The Sycamore/Talbot store was filled with enormous hanging red and black signs that screamed liquidation. It changed the entire look and feeling of the store. It was tacky and tasteless at best. Pricing had clearly changed. Almost neon yellow and black signs with numbers scribbled in large black marker indicated the prices. What else will change? Can the fabrics be trusted under the new regime? I am aware that Talbot Stores in Premium Mall Outlets have clothes manufactured specifically for them and that they are not the same quality as the traditional Talbot store goods. I hope Sycamore will maintain the quality that traditional Talbots represents. Customers know, feel and see the difference between Talbot garments vs. Target garments no matter whose name is put in them.