Women’s apparel retailer The Limited has filed for bankruptcy, the culmination of a liquidation process that began last month and included the closing of all 250 of the company’s stores. The Limited has also entered into an asset purchase agreement with an affiliate of Sycamore Partners, which has reportedly agreed to pay $25.75 million for the fashion chain’s intellectual property.
In other news from the reeling retail industry, Apollo Global Management-backed Claire’s, a shopping-mall staple that sells ear-piercing services, jewelry and other accessories, has officially withdrawn its IPO—just days after Neiman Marcus did the same. Claire's originally filed to go public during 2013. The two developments are merely the latest in a series of setbacks for big-box stores that’s seen former industry giants like Quiksilver, American Apparel and Aéropostale enter bankruptcy proceedings.
For Sun Capital Partners, The Limited’s private equity owner, though, the news isn't so bad. The firm earned a 1.8x return on its original investment made in 2007, according to a recent Reuters report, using distributions and dividends to pull cash out of the failing business. “We have worked very hard and made significant investments over nine years to improve operations and create a sustainable business at The Limited,” Sun Capital wrote to Reuters in an emailed statement.