Specialty clothing and accessories retailer Chico's FAS Inc announced another step in its plan to explore investments in companies offering significant future growth opportunities. Chico's said the use of funds for these purposes is an appropriate corporate strategy given Chico's current cash position. In this connection Chico's is finalizing a $10 million purchase of a minority interest in lucy activewear. Chico's will be entitled to one representative on the lucy board of directors.
Founded in 1999, lucy activewear is a privately owned, Portland Oregon based specialty retailer currently operating 18 stores throughout the Western United States together with an established e-commerce website, www.lucy.com. The proceeds of the financing are intended to be used by lucy activewear to accelerate its store growth plan. Other major strategic investors in lucy activewear include Lone Pine Capital, Maveron LLC, Oak Investment Partners, and Sutter Hill Ventures.
They are very pleased to have the opportunity to invest in lucy activewear expect to continue to evaluate possible investment opportunities that fit strategic and financial objectives. Given the size of the Lucy investment together with the future potential for the company, company think opportunities of this nature are important strategic uses of our cash. Like Chico's, Lucy shares an over-riding commitment to customer service and brand building. They are impressed with lucy's management team and with lucy as an emerging brand in a growing product category. Commented by Scott A. Edmonds, President and Chief Executive Officer of Chico's FAS, Inc
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