Talbots takeover collapses; retailer's stock plunges 41% Women's clothier Talbots Inc. said that a deadline expired without a deal in its exclusive talks about being acquired by a private equity firm and that it will actively pursue other options. The retailer said Friday that Sycamore Partners told the company that "it is not prepared to execute a transaction at this time." The end of the talks sent Talbots' stock down $1.05, or 41%, to $1.51. The two companies had been in exclusive talks on a potential $211-million buyout, with Talbots extending the discussions a second time this week. The latest deadline was Thursday. Sycamore offered this month to buy Talbots for $3.05 a share, up from its previous offer of $3 a share for the Hingham, Mass., company, which it made in December. Talbots said it is still open to pursuing a deal with Sycamore at the $3.05-a-share purchase price. But Talbots added that since its exclusive talks with Sycamore have ended, it will actively explore other strategic options. Talbots, which sells women's clothing and accessories, has struggled for some time and posted annual losses for four of the last five years. The company tried to reverse its downward spiral by cutting jobs, closing stores, lowering inventory, limiting marketing spending and trimming employee hours. But Talbots continues to look for other solutions to its woes. Its management has said it is considering all its strategic alternatives and is seeking a new leader for the company. Talbots also reported Friday that its fiscal first-quarter net income rose to $1.09 million, or 2 cents a share, from $739,000, or 1 cent, a year earlier. Excluding restructuring charges and other items, earnings from continuing operations were 9 cents a share. Revenue for the period ended April 28 fell 8% to $275.9 million, partly hurt by store closings. Analysts polled by FactSet expected a loss of 2 cents a share on revenue of $272.5 million. Talbots had 516 stores in 46 states and Canada at the end of the first quarter.