US women’s wear retailer Chico’s FAS has received a revised offer from Sycamore Partners to acquire the company, with the private equity firm lowering its bid to US$3.00 per share in cash.

Chico’s says it will carefully review the new proposal – although its board has already unanimously rejected a higher-priced offer of $3.50 per share from Sycamore last month. It decided this substantially undervalued Chico’s FAS and was not in the best interests of shareholders. And an earlier offer from Sycamore in April to acquire the company for $4.30 per share was also rejected.

Chico’s says numerous shareholders have expressed their support for the board’s previous decision to reject Sycamore’s proposal and share the view that Sycamore’s proposal is “inadequate.” 

In its most recent quarterly update, Chico’s reported a 7.8% drop in net sales to US$517.7m for the first quarter ended 4 May. Net income tumbled to $2m from $29m in the year-ago period, while adjusted net income totalled $5.6m.