Takeover talks between retailer Express and private equity firm Sycamore Partners have ended, the companies said Tuesday.
Shares of Express, which sells women's and men's clothing and accessories, dropped more than 13 percent in premarket trading.
The companies said that discussions were halted due to the unavailability of financing on commercially acceptable terms.
In June Express Inc. announced that it had been approached by New York-based Sycamore Partners about a potential deal. Sycamore Partners owns 9.8 percent of Express' stock, according to FactSet.
The companies said Tuesday that Sycamore Partners has agreed to certain restrictions, including waiting until June 15 before it can potentially disclose certain information or contact or enter into an arrangement with third parties for the purpose of acquiring Express.
Express has more than 600 retail and factory outlet stores in the U.S., Canada and Puerto Rico. Its merchandise is also available at franchise locations in the Middle East, Latin America and South Africa.
Shares of the Columbus, Ohio company slid $1.93, or 13.4 percent, to $12.51 before the market open.