Dive Brief:
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Private equity firm Sycamore Partners, which has taken over retailers Jones Group, Hot Topic, and Talbots, Thursday reported a 9.9% stake in Express Inc. and says it is pursuing a possible buyout.
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Express Inc.’s board adopted a shareholder rights plan with a 10% trigger — a so-called poison pill — to buy time to consider the matter.
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But Columbus, OH-based Express says it’s open to a sale if it’s in the interest of shareholders and has formed a special committee and retained asset management firm Perella Weinberg Partners LP and law firm Sullivan & Cromwell LLP to advise them on the matter.
Dive Insight:
Express Inc. went public in 2010 and had broken off from former parent L Brands Inc. in 2007. Sycamore founder/managing director Stefan Kaluzny led the 2007 buyout of Express as an executive of private equity firm Golden Gate Partners and also served for a time on Express Inc.’s board. The apparel retailer is geared to people under 30 and has recently faced increased competition, price pressures, and slow sales.