* Deal Includes 12 Existing Franchise Stores
FORT MYERS, Fla., Jan. 11 /PRNewswire-FirstCall/ -- Chico's FAS, Inc.
(NYSE: CHS) announced today that it signed a definitive agreement to acquire
the franchise rights for the State of Minnesota through its purchase of a
substantial portion of the assets of its Minnesota franchisee, Intraco, Inc.,
d/b/a Chico's of Minnesota.
(Logo: http://www.newscom.com/cgi-bin/prnh/20030428/CHICOLOGO )
The Minnesota franchisee, which holds territorial franchise rights to the
entire state of Minnesota for the Chico's brand, currently operates twelve
Chico's brand store locations in Minnesota. The acquisition will include all
existing locations together with the reacquisition of the territorial
franchise rights to the state of Minnesota. The Company declined to report
the purchase price, but confirmed that it would be paid in cash and that the
acquisition would be fully financed through the Company's available cash
resources.
Scott A. Edmonds, President & CEO, commented, "This is a bittersweet
announcement for us. We are thrilled with the opportunity to acquire the
Minnesota franchise rights and the chance to more fully develop the Chico's
family of brands in Minnesota. We are saddened, however, as it brings to an
end a great relationship with our long-time friends and business partners
Dottie Dekko, Danna and Rick Atherton, and Lezlie Bork." Mr. Edmonds
continued, "From the Tom Dekko memorial plaque proudly displayed at our
headquarters, to the tree planted in honor of their first franchise store,
Chico's of Minnesota will always have a treasured place in the history of
Chico's FAS, Inc."
The acquisition is expected to be slightly accretive to earnings for
fiscal 2007. Consummation of this transaction is subject to customary closing
conditions and is expected to close in February 2007. Chico's was advised on
the transaction by BB&T Capital Markets.
The Company is a specialty retailer of private label, sophisticated,
casual-to-dressy clothing, intimates, complementary accessories, and other
non-clothing gift items. The Company operates 907 women's specialty stores,
including stores in 47 states, the District of Columbia, the U.S. Virgin
Islands and Puerto Rico operating under the Chico's, White House | Black
Market, Soma by Chico's and Fitigues names. The Company owns 540 Chico's
front-line stores, 32 Chico's outlet stores, 249 White House | Black Market
front-line stores, 14 White House | Black Market outlet stores, 49 Soma by
Chico's stores, 9 Fitigues front-line stores and 1 Fitigues outlet store;
franchisees own and operate 13 Chico's stores.
Certain statements contained herein, including without limitation,
statements addressing the beliefs, plans, objectives, estimates or
expectations of the Company or future results or events constitute "forward-
looking statements" within the meaning of the Private Securities Litigation
Reform Act of 1995, as amended. Such forward-looking statements involve known
or unknown risks, including, but not limited to, general economic and business
conditions, and conditions in the specialty retail industry. There can be no
assurance that the actual future results, performance, or achievements
expressed or implied by such forward-looking statements will occur. Users of
forward-looking statements are encouraged to review the Company's latest
annual report on Form 10-K, its filings on Form 10-Q, management's discussion
and analysis in the Company's latest annual report to stockholders, the
Company's filings on Form 8-K, and other federal securities law filings for a
description of other important factors that may affect the Company's business,
results of operations and financial condition. The Company does not undertake
to publicly update or revise its forward-looking statements even if experience
or future changes make it clear that projected results expressed or implied in
such statements will not be realized.
For more detailed information, please call (877) 424-4267 to listen to the
Company's monthly sales information and investor relations line
A copy of a slide show addressing the Company's recent financial results
and current plans for expansion is available on the Company's website at
http://www.chicos.com in the investor relations section under Our Company
Additional investor information on Chico's FAS, Inc. is available free of
charge on the Company's website at http://www.chicos.com in the investor
relations section under Our Company
Executive Contacts:
Charles J. Kleman
Executive Vice President
Chief Financial Officer
Chico's FAS, Inc.
(239) 274-4105
F. Michael Smith
Vice President
Investor and Community Relations
Chico's FAS, Inc.
(239) 274-4797
SOURCE Chico's FAS, Inc.
-0- 01/11/2007
/CONTACT: Charles J. Kleman, Executive Vice President and Chief Financial
Officer, +1-239-274-4105, or F. Michael Smith, Vice President, Investor and
Community Relations, +1-239-274-4797, both of Chico's FAS, Inc./
/Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20030428/CHICOLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com/
/Web site: http://www.chicos.com /
(CHS)
CO: Chico's FAS, Inc.; Intraco, Inc.
ST: Florida; Minnesota
IN: REA
SU: TNM
CL-HB
-- CLTH121 --
7753 01/11/2007 16:30 EST http://www.prnewswire.com