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FORT MYERS — Women's retailer Chico's FAS says it plans to sell Boston Proper's catalog business and close the stores of the brand it acquired in 2011 for $213 million.
Chico's executives did not explain in a statement the reason for selling Boston Proper and closing the stores. However, the Fort Myers-based company says it will take a $66.9 million impairment charge in the second quarter and a restructuring charge of $16.2 million.
Boston Proper sold clothes and accessories by catalog and online before Chico's acquired the privately held company in 2011. Chico's opened the first Boston Proper store at Coconut Point Mall in Estero in 2013. In total Chico's has opened 20 Boston Proper stores. In the most recent quarter, Boston Proper's sales totaled $24.2 million, or 3.6% of the company's net sales.
The Boston Proper charges weighed heavily on Chico's earnings in the second quarter. The company reported net income of $2.1 million on sales of $680.3 million in the quarter ending Aug. 1. That compares with net income of $30.1 million on sales of $671.1 million in the same quarter one year ago. In addition, Chico's reported sales at stores opened longer than one year rose 0.5% in the second quarter. The company says the average dollar sale rose despite fewer transactions.
Chico's operates 1,548 stores under the Chico's, White House | Black Market and Soma brands.
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