US women's wear chain Talbots has revealed it has received a second offer for the company from private equity firm Sycamore Partners, which has increased its bid to US$3.05 per share.

Sycamore Partners made an initial $3.00 per share bid in early December, which the retailer said was "inadequate" and "substantially undervalues the company".

Talbots said yesterday (7 May) that following the second bid, it has entered into an exclusivity agreement with Sycamore Partners, which will terminate on 15 May.

Talbots has struggled for some time, with fourth-quarter net losses widening to US$53.2m from $2.8m in the same period of the prior year, while sales fell 1.1% to US$289.4m. Full-year net losses reached $111.9m, as sales declined 5.9% to $1.1bn.

It said it continues to evaluate strategic alternatives, including this proposal and is being advised by Perella Weinberg Partners.