US: Chico’s buys back Minnesota franchise rights
Chico's FAS on Thursday (11 January) reported that it had agreed to acquire most of the assets of the Chico's brand franchisee in the state of Minnesota, Intraco Inc, including its 12 retail locations, for an undisclosed amount of cash.
The acquisition includes territorial franchise rights in the state and would be made from cash on hand, Chico's said.
"We are thrilled with the opportunity to acquire the Minnesota franchise rights and the chance to more fully develop the Chico's family of brands in Minnesota," said Scott Edmonds, president and chief executive of the company.
"We are saddened, however, as it brings to an end a great relationship with our long-time friends and business partners Dottie Dekko, Danna and Rick Atherton and Lezlie Bork".
The transaction is expected to be consummated next month and is subject to customary closing conditions.
BB&T Capital Markets advised Chico's on the deal.
In addition to other nameplates, Chico's, based in Fort Myers, Florida, operates 540 Chico's specialty stores and 32 Chico's outlets.
By Arnold J Karr.
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