Talbots Rejects Buyout Offer

Talbots (Hingham, Mass) has rejected an unsolicited buyout offer from a private equity firm, calling it too low, reports the New York Times. In turn, the retailer plans to explore strategic alternatives.

The bid, of $3 a share, from Sycamore Partners valued the retailer at about $212 million. Sycamore is one of the largest holders of Talbots stock, with about 9 percent of the company’s shares, according to the New York Times.

Talbots said in a statement that the bid undervalued the company. But Talbots has an enterprise value of $331.2 million, according to data and analytics provider Capital IQ.

Some experts viewed the bid as a lifeline to Talbots, which continues to struggle with below-average sales.

“We believe that Talbots has significant potential and remains a premier, storied brand,” says Stefan Kaluzny, Sycamore’s co-founder, in a New York Times article. “We also believe, however, that the steps necessary to maximize the value of Talbots’ assets will require more aggressive action than has been taken to date and which would be extremely difficult to execute while remaining a public company.”