Chico's closes stores, fires staff

FORT MYERS — Women's retailer Chico's FAS reported a net loss of $31.8 million in the fourth quarter and announced plans to close 120 stores and lay off 12% of its headquarters staff.

“The actions we have taken delivered positive comparable sales across all brands, an increase in gross margin dollars and lower inventory levels,” says David Dyer, president and CEO of Chico's, in a statement. “While the overall apparel retail environment remains challenging, we expect the new capital allocation and cost reduction initiatives announced today will further strengthen Chico's FAS and its brands.”

Chico's operates 1,547 stores in the U.S. and Canada under the brands Chico's, White House | Black Market, Soma Intimates and Boston Proper. A deal by private equity firm Sycamore Partners to acquire Chico's collapsed due to lack of financing, the Wall Street Journal reported Wednesday.