Sycamore Seeks Private Debt to Fund $1 Billion Chico’s Purchase

Sycamore Partners is in talks with private credit firms to arrange as much as $300 million in financing for its $1 billion acquisition of apparel retailer Chico’s FAS Inc., according to people with knowledge of the matter.

Sycamore plans to merge Chico’s into the newly formed KnitWell Group, a holding company that owns clothing brands including Ann Taylor, LOFT and Talbots, said the people, who asked not to be named discussing a private transaction.

The discussions are the latest example of a company tapping private credit lenders to finance smaller acquisitions. So-called add-on transactions have become more popular as ...