Dive Brief:

• Discussions on a potential acquisition of apparel retailer Express by private equity firm Sycamore Partners Management have ended, the firm said Tuesday. The talks had been going on for seven months.

• In June the firm revealed a 9.9% stake in the retailer and said it was interested in buying. Sycamore owns several apparel retailers including Talbot, Hot Topic, and the Jones Group, which includes the Nine West and Anne Klein brands.

• The deal fell through because Sycamore couldn’t get favorable financing terms. 

Dive Insight:

Express shares rose months ago on news of Sycamore’s interest, so it’s hardly surprising that Express shares fell on the news that Sycamore wouldn’t be buying. The apparel retailer focused on young adults runs 600 stores in the U.S., and is struggling as many other teen retailers are due to declining mall traffic and changing tastes.