Express ends deal talks with Sycamore Partners

Apparel retailer Express Inc said it ended talks to be bought by private equity firm Sycamore Partners, its largest shareholder, due to unavailability of financing.

Shares of Express, which was once a division of L Brands Inc, were down nearly 13 percent at $12.60 in premarket trading.

Sycamore agreed to some restrictions, which included not contacting or entering into arrangements with third parties for buying Express, a joint statement said.

The private equity firm said it was interested in buying Express last June, after disclosing a 9.9 percent stake in the company.

Private equity firm Golden Gate Capital took Express private in 2007 and brought it back on the market three years later.

Express shares had risen nearly 7 percent since June 12, when the company said it had received a letter from Sycamore expressing interest in buying the company.