Women’s apparel retailer Chico’s FAS Inc said on Thursday its board had rejected an unsolicited buyout offer from private equity Sycamore Partners LP as it substantially undervalued the company.

The retailer said the offer of $3 per share in cash was not in the best interests of the company’s shareholders.

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Sycamore last week said it had lowered its offer for Chico’s to $350 million in cash because of the U.S. women’s apparel retailer’s deteriorating financial performance.