Clothing retailer Chico’s FAS’ board of directors has unanimously rejected Sycamore’s unsolicited proposal to buy the company for $3.00 per share in cash.

Announced earlier this month, the revised proposal was carefully reviewed by the board to reach a decision in consultation with its independent financial and legal advisors.

Following a review and consultation, it has been determined that the offer substantially undervalues the retailer and is not in the best interests of its shareholders.

The latest decision follows the board’s decision to unanimously reject a previous proposal of $3.50 per share, which was submitted by Sycamore on 10 May.

Chico’s FAS board of directors chair David Walker said: “Our focus is on serving the best interests of all Chico’s FAS shareholders, and we are pleased with the strong support we have received from numerous Chico’s FAS shareholders for the actions underway to improve the company’s performance.

“Notably, shareholders have also expressed their belief that Sycamore’s proposal significantly undervalues the company. We remain committed to enhancing value for all Chico’s FAS shareholders.

“We are making progress on our new operating priorities and the search for a new CEO, and will remain focused on continuing to execute in these areas.”

In a letter to Sycamore Partners managing director Stefan Kaluzny, Walker noted that the board made various changes to its leadership team and reset priorities for growth and value creation.

It is currently focusing on various initiatives to drive sales, enhance customer experience and supply-chain operations, and is in search of a new CEO.

Goldman Sachs is acting as financial advisor, while Paul, Weiss, Rifkind and Wharton & Garrison will act as legal counsel to Chico’s FAS.

The speciality retailer operates 1,410 stores in the US and Canada, and sold merchandise through 84 international franchise locations in Mexico and one domestic franchise airport store. The company’s brands include its namesake, White House Black Market, Soma and TellTale.