Talbots, Sycamore talks end with no deal; Talbots shares sink

This morning, Talbots (TLB) said Sycamore Partners, which had been in exclusive talks to acquire it, was not prepared to execute a transaction at this time. Shares of Talbots are down 88c, or 34.38, to $1.68 in mid-morning trading after Talbots said the exclusivity period with Sycamore, which was extended twice through May 24, had ended. Talbots says it is still open to pursuing a transaction with Sycamore at $3.05 per share, if Sycamore can provide an appropriate level of closing certainty and financing commitments. Talbots, which also reported better-than-expected Q1 results, says it will actively explore other strategic alternatives. Talbots said Q1 adjusted EPS was 9c, beating analysts' estimates of (2c), and revenue was $275.9M, above the consensus of $272.54M. Talbots says consolidated Q1 same-store sales declined 3.8%. The retailer says it closed eight locations in Q1 and expects to close approximately 110 locations in total; the company will look to close additional stores opportunistically this year. In the meantime, Talbots says it will continue to focus on creating value for shareholders and executing its business plan.