People keep asking: is Chico’s going out of business? You may have seen rumors on social media or heard chatter about store closures or a big change in leadership. But the real story is actually more complicated—and not as dire as those headlines might make it seem.
Let’s break down what’s been happening with Chico’s FAS, why their future is looking a little different, and what that means if you’re a fan of their stores.
Who Is Chico’s, Anyway?
If you know Chico’s, you probably know their bright, artsy women’s clothes. But Chico’s FAS actually owns three brands: Chico’s, White House Black Market, and Soma. The company has been around since the early 1980s and grew into a national chain, with hundreds of stores in malls and shopping centers.
For years, Chico’s stores were big destinations for women looking for stylish, comfortable clothes—a bit more personality than what you’d see at a department store. Even if you haven’t shopped there, chances are you’ve seen the striped bags or walked past their window displays.
The Big Change: Chico’s Gets Acquired
Here’s where things get interesting. After a rough stretch financially, Chico’s FAS was bought by Sycamore Partners, a large New York private equity firm, in early 2024. The deal was valued at just under $1 billion—a big number, but actually not huge for a chain of this size.
What does this mean for Chico’s? The company went from being publicly traded, with shares listing on the New York Stock Exchange, to privately owned. That change took effect in January 2024, and it was clear this was about more than just a new stock ticker.
Sycamore Partners already owns a handful of other well-known retail brands, so this wasn’t their first time taking a struggling retailer private. For Chico’s, it meant the pressures of public markets—quarterly earnings, analyst calls, shareholder pressure—were suddenly gone. But it also meant some big behind-the-scenes changes.
Leadership Shifts: CEO Out, Brands Shift to KnitWell
A lot can happen when a private equity firm takes over. In Chico’s case, the most public change was at the top: longtime CEO Molly Langenstein left just days after the deal closed. If you’ve ever followed retail, you know new owners love to put their own people in place or just shake up the structure.
But that’s not all. Sycamore Plans to merge Chico’s brands into something it calls the KnitWell Group, an umbrella that houses several of their clothing chains. The idea seems pretty simple: create efficiencies, maybe run back-office stuff together, and see if some of the formula that’s helped other Sycamore brands can spark new growth at Chico’s.
For now, you probably won’t notice new names on store windows. But the business is no longer run exactly as it was.
The Tough Years: Declining Sales, Store Closures, and Financial Pressure
So, how did Chico’s get here? Like a lot of retailers, the company had a golden run—then suddenly hit some rough water. Pre-pandemic, Chico’s was already seeing sales slow and competition heat up. More shoppers moved online, and it got harder for mall-based stores to bring in foot traffic.
In fiscal Q3 2023, their last full report before being bought, Chico’s logged $505.1 million in net sales. That’s a lot, but it was down 2.5% from the year before. And when you multiply that across all their stores, it paints a picture of slow erosion.
The pressure forced them to announce about 40 stores—mostly Chico’s and White House Black Market—would close in 2022. If you shop at a local mall, you may have noticed one shut down, or heard friends say their favorite location was gone.
Add to that the growing presence of online competitors, the rise of discount brands, and changing fashion habits, and Chico’s just couldn’t keep up in the same way.
The COVID-19 Shock
Then COVID hit. Like a lot of retailers, Chico’s sales fell off a cliff during the worst of the pandemic. Stores were temporarily closed, and even after reopening, people just didn’t shop for clothes like they used to. Home became the office, high heels and statement necklaces were swapped for comfort wear, and that hurt a chain rooted in in-store experiences.
Chico’s scrambled to adapt. They tried masks, curbside pickup, a beefed-up website, and new digital offers. But recovery didn’t come easily, and a lot of the pandemic shifts—like more online shopping and fewer big social events—stuck around.
Trying Something New: How Chico’s Tried To Turn It Around
Instead of giving up, Chico’s made some big bets on digital. They invested in better e-commerce tools, tried to make their online store more attractive, and leaned into things like personalized shopping. If you shopped online for Soma bras during lockdowns, you probably found more styles and fit advice than before.
Behind the scenes, Chico’s tried to use data and analytics to stock stores more efficiently and keep styles fresh. At the same time, they started closing underperforming stores—smaller locations or older mall stores that just couldn’t bring in the numbers anymore.
Some analysts noticed a few hopeful signs by early 2023. Chico’s sales figures showed improvement, and the brand was getting more comfortable with digital business. Their core customers still cared about fit and service, which helped stabilize sales.
But by then, it was clear that big change was needed, and private ownership offered an escape from the grind of public-market expectations.
What’s Going On with Chico’s Today?
So, is Chico’s actually going out of business? No. Instead, the company is in the middle of what you might call a “reset.” Under Sycamore Partners, Chico’s is being run as a private business, with new hands at the wheel and a mandate to get profitable again.
This is a different playbook. Public companies have to show steady, transparent progress every quarter. Private equity firms like Sycamore can afford to take bigger risks, shift gears, and make tough decisions out of the public eye.
Chico’s brands—the clothing you know and maybe love—are still available. White House Black Market and Soma are sticking around, too.
But you may see fewer stores, or find new promotions and different marketing approaches. Decisions might come faster (and sometimes with less fanfare). Store refreshes, a new mix of online and in-store experiences, and other changes could show up within months, not years.
What Might Change Next?
Looking ahead, there are a few things to keep an eye on for Chico’s shoppers and employees. First, Sycamore Partners has a reputation for cost-cutting and pushing brands toward digital. There may be more store closures, staff shuffles, or changes in product lines.
The move to the KnitWell Group could also mean cross-pollination with other Sycamore-owned brands. If you shop Soma and White House Black Market, you might notice some cross-brand promotions or shared loyalty programs down the line.
Some industry experts are pretty divided. Sycamore Partners has revived other struggling chains (like Staples and Loft), but sometimes, cost-cutting hurts customer experience in the long run. We’ve seen this story play out with other mall retailers—sometimes it works, sometimes customers walk away.
Other experts see upside. Chico’s has a dedicated core customer, especially for Soma and in certain regions, and that loyalty could help weather the changes. Private ownership also allows for experiments that public companies might never risk.
For more insights into how retail acquisitions play out and what it means for shoppers, you might want to check out Blue Business Mag—they cover these retail stories from both the business perspective and the shopper’s point of view.
So, Should You Worry About Your Local Chico’s?
Right now, your favorite Chico’s isn’t likely closing overnight. If your location survived the 2022 wave of shutdowns, it’s probably considered an important market. But don’t be surprised if you see occasional closures or shifts, especially in malls that are already losing stores.
Online, Chico’s, White House Black Market, and Soma are still open for business. If you’re used to ordering bras from Soma’s site or looking for signature black-and-white dresses, you should be able to shop just like before.
Loyal customers may see some new offers or website changes as the brand continues to push digital sales. At the same time, if you work for Chico’s corporate or in stores, you may notice cultural shifts or new management styles coming down from the KnitWell Group.
For everyone else, you may not even notice the background changes—storefront signs will stay the same for now.
The Bottom Line: Not Closing, Just Changing
To sum up, Chico’s isn’t going out of business. After several tough years, the company is getting a reset under private ownership thanks to Sycamore Partners. There are new leaders, new strategies, and ongoing experiments to win back shoppers.
Stores may close in some areas, but the brands themselves are sticking around. If you shop there, you’ll keep seeing new lines and digital features. If anything, expect more online focus and less of the old mall model.
Chico’s is facing the same question a lot of retailers are asking: is it possible to thrive as stores change and shoppers go digital? Sycamore and KnitWell clearly think there’s a path forward, even if it means tough choices.
So, next time you hear that Chico’s is vanishing, you’ll know the truth—the company is still here, still open, and in the middle of its next chapter. We’ll see if these changes are enough to give Chico’s, White House Black Market, and Soma another chance to connect with today’s shopper.
That’s where things stand. If anything big changes, we’ll keep an eye on it. For now, the bottom line is this: Chico’s isn’t calling it quits. They’re just trying something new.
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