EmailTalbots (TLB $1.81 -0.76) announced that the exclusivity agreement with Sycamore Partners, which was executed on May 5, 2012 and twice extended through May 24, 2012, has expired. The Company has worked exclusively in good faith with Sycamore Partners to execute a transaction. Sycamore Partners informed the Company that it is not prepared to execute a transaction at this time. The Company remains open to pursuing a transaction with Sycamore Partners at $3.05 per share pursuant to an acceptable merger agreement providing for an appropriate level of closing certainty and supported by firm debt and equity financing commitments. The Company is no longer subject to exclusivity and therefore will actively explore other strategic alternatives and in the meantime will continue to be focused on executing its business plan and creating value for its shareholders.
Co also reported first quarter GAAP EPS of $0.02 versus the ($0.02) Capital IQ consensus with revenues of -8% year over year to $275.9 million versus $271.95 million consensus. "We are pleased to have achieved profitability in the first quarter, driven by improved merchandise margin compared to the prior year period as well as strong inventory and expense management. Overall, we continue to focus on further enhancing our product, re-engaging with our core customer and executing our key strategic initiatives as the Board continues to actively explore a full range of strategic alternatives." See 8:30 comment or more info on deal that fell though at $3.05.
