Chico’s Keeps Growing

Chico's FAS Inc. (Fort Myers, Fla.) is finalizing a $10 million purchase of a minority interest in lucy activewear, a privately owned, Portland, Ore.-based specialty retailer. The move is another step in Chico’s plan to explore investments in companies offering significant future growth opportunities. Chico's said the use of funds for these purposes is an appropriate corporate strategy given Chico's current cash position. In this connection, Chico's will be entitled to one representative on the lucy board of directors.

“We are very pleased to have the opportunity to invest in lucy activewear,” said Scott Edmonds, Chico's president and ceo. “We expect to continue to evaluate possible investment opportunities that fit our strategic and financial objectives. Given the size of the lucy investment together with the future potential for the company, we think opportunities of this nature are important strategic uses of our cash.”

Founded in 1999, lucy activewear operates 18 stores located in the western U.S. and an established e-commerce website. The proceeds of the financing are intended to be used by lucy activewear to accelerate its store growth plan. Other major strategic investors in lucy activewear include Lone Pine Capital, Maveron LLC, Oak Investment Partners, and Sutter Hill Ventures.

“Like Chico's, lucy shares an over-riding commitment to customer service and brand building,” said Edmonds. “We are impressed with lucy's management team and with lucy as an emerging brand in a growing product category.”

Chico’s, a specialty retailer of private label, sophisticated, casual-to-dressy clothing, intimates, complementary accessories, and other non-clothing gift items, operates 705 women's specialty stores under the Chico's, White House | Black Market, and Soma by Chico's names.