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Sycamore Partners, the private equity firm, has formed KnitWell Group, a holding company combining three women’s apparel specialty chains with similar products and customer demographics: Ann Taylor, LOFT, and Talbots.
Sycamore took Talbots private in 2012 when it was struggling with a high debt load and had seen five straight years of declining sales amid competition from Ann Inc. — owner of Ann Taylor and LOFT — and Chico's FAS. Talbots’ attempts to reach younger customers had also failed and alienated core shoppers: women over the age of 35.
In 2020, Sycamore acquired Ann Taylor, LOFT, Lane Bryant, and Lou & Grey out of Ascena’s bankruptcy proceedings. Ascena’s bankruptcy was blamed on the pandemic, but the retail conglomerate also faced challenges competing against “online retailers and inexpensive fast fashion brands” like Zara, H&M, and Amazon.
KnitWell will rank as one of the largest specialty apparel companies in the U.S. with combined annual sales of more than $3 billion. LOFT and Talbots each have about 500 stores, while Ann Taylor has about 200.
Lizanne Kindler, Talbots’ CEO, will lead KnitWell as executive chair and CEO. Kindler was Ann Taylor’s SVP of merchandising from 1992 until 2008 and has led Talbots since 2012 while overseeing Ann Taylor and LOFT since Sycamore’s acquisition. She will be joined “by a seasoned team of retail executives, and further supported by senior leaders at each of the brands — all of whom are dedicated to the unique needs of their customers.”
Kindler said, “We know that this new structure will support our efforts to unite brands and people by providing greater resources and capabilities, economies of scale, and enhanced value.”
Sycamore, which also owns large stakes in Belk, Hot Topic, and Staples, indicated other banners could be added to KnitWell.
Stefan Kaluzny, managing director of Sycamore, said, “Lizanne and the team have done an incredible job over the last decade reviving and growing these iconic American brands, first Talbots and most recently Ann Taylor and LOFT. The consistent and focused approach, which leverages the replicable playbook this team has developed, is laying the foundation of success not only for the brands currently part of the KnitWell portfolio, but also for potential future brands.”