Chico’s isn’t just a store you stroll past at the mall—it’s a brand many people associate with easygoing, colorful women’s apparel and, maybe, a friendly sales assistant who knows you by name. Over the past year, though, you may have caught some headlines raising the question: is Chico’s going out of business?
Let’s talk about what’s really going on. The short answer: Chico’s is not going out of business. But a lot is changing behind the scenes.
What’s Happening at Chico’s Right Now?
This all starts with a big deal that closed at the very start of 2024. Chico’s FAS, which owns Chico’s, White House Black Market, and Soma, was just bought by Sycamore Partners. Sycamore is a private equity firm out of New York that likes to invest in retailers—think Ann Taylor, Belk, and Staples.
Before the sale, Chico’s was publicly traded on the New York Stock Exchange. You could look up their ticker or watch the stock price bounce around, just like any other public company. But after shareholders gave the green light in January 2024, Chico’s went private. That means no more stock ticker, no quarterly earnings conference calls, and less public scrutiny of their numbers.
This isn’t the same as going out of business. It’s more like moving behind closed doors, where they can make changes with less pressure from Wall Street.
Another shakeup: soon after the sale, the CEO Molly Langenstein left her role. It’s always a sign of transition when top execs step aside right after a buyout, but it’s also pretty standard in these situations. The new owners usually want to bring in their own team or leadership style.
Chico’s Money Troubles Before the Sale
It wasn’t exactly a secret that Chico’s, like a lot of mall brands, was struggling for a while. Store traffic had been declining, and a chunk of their customer base was shopping elsewhere or just not shopping as much.
In the few years before the Sycamore deal, Chico’s closed lots of locations around the country. Fewer people were coming into malls, so keeping every store open stopped making sense. The move to shut stores was an effort to stop the bleeding.
Less foot traffic obviously meant less revenue. There was also more online competition than ever—lots of people are buying fashion online, and not everyone’s loyal to one brand. Chico’s was losing customers to both digital-first brands and even regular big-box stores.
And if that weren’t enough, COVID-19 really threw a wrench in things. Like most fashion retailers, Chico’s sales tanked during 2020. Some reports said the company had an 80% chance of running into serious financial trouble. For a while, it genuinely looked pretty rocky.
How Chico’s Tried to Turn It Around?
Chico’s didn’t just accept things as they were. Executives knew they needed to change fast if they wanted to survive in a world where shoppers might never come back in the same numbers.
One big focus was digital. Chico’s had to catch up with brands that already sold tons online. This meant redoing their website to make it easier to browse and buy, using data to figure out what real customers wanted, and making their e-commerce operation a bigger part of their business.
They also worked on money-saving moves behind the scenes. Chico’s shrank its store footprint, making tough decisions about what to keep open. The idea was to make every store count and beef up the ones that worked well. They cut costs where they could, but also tried to invest in areas that would actually help sales long-term.
Another push: figuring out how to hang onto loyal customers. That meant updating styles, keeping prices reasonable, and training staff to offer service that feels personal—one of the things Chico’s is known for when it’s at its best.
You could see signs that things were working. After the pandemic’s worst days, sales started to improve. Shoppers were returning, both in stores that stayed open and on Chico’s website. Still, things weren’t perfect, and the company was far from its old peak.
So, Is Chico’s Really Going Away?
With all these headlines and rumors, it’s fair to wonder if Chico’s is just biding its time until the next round of closures or cuts. But that’s not what’s happening now.
Chico’s is still operating—across hundreds of stores, plus their websites and catalog sales. If you walk into a mall where Chico’s has a location, you’ll probably still see the doors open, new seasonal displays, and the usual necklaces and scarves stacked up near the register.
The biggest change for most customers is invisible. Chico’s is now a private company, and the Sycamore team is likely working through a long-term plan that you and I won’t see before it’s ready for prime time.
That said, it’s a smart time for any Chico’s fan to pay attention. Over the next year or two, you might notice more digital sales, changes in where stores are located, or maybe new product launches inspired by deeper customer data.
It’s not just Chico’s facing these pressures—lots of traditional retailers are having to deal with the same shift. The pandemic made everyone rethink how they shop, and online brands continue to grab market share. Chico’s isn’t immune, but it’s not alone, either.
What Can Shoppers Expect Next?
If you’re a regular at Chico’s or its sister stores like Soma and White House Black Market, you might be wondering how all of this affects you. Should you worry that your favorite shop will vanish suddenly, or that styles will drastically shift?
For now, the best bet is that things will feel familiar—at least in the short term. The new owners are likely reviewing everything, but these brands have loyal customer bases they probably don’t want to alienate too fast.
A good example: After similar buyouts in retail, companies often use more targeted marketing and do more with technology. That might mean easier online shopping and more personalized offers sent to your email. Sometimes, new owners quietly refresh the brand, fixing things that annoyed shoppers before.
If you’re watching the situation or shopping for updates on similar retailers, you can find helpful coverage at business sites like Business Republic.
Long-term, though, expect smart adjustments. You might see a leaner Chico’s with a tighter focus on online sales, revamped store layouts, and more attention given to what today’s shoppers want.
The Bottom Line
Chico’s FAS is not closing down. It has moved from being a publicly traded stock to being privately owned by Sycamore Partners, which means less public info but probably more behind-the-scenes changes.
There were tough financial years leading up to this move, including store closures and declining sales during the pandemic. But Chico’s has been making a real effort to stay relevant, focusing on digital sales and tightening its operations.
There’s every reason to think Chico’s stores and websites will keep doing business for the foreseeable future. The brands—Chico’s, Soma, and White House Black Market—aren’t disappearing, even if they evolve.
Like any big retailer under new ownership, Chico’s will probably keep making changes to stay afloat and grow. If anything truly major changes, you’ll hear about it in mainstream business news and from Chico’s itself. For now, you can walk in, shop online, and expect to see new merchandise on the racks and website as always.
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