BENSALEM, Pa., April 25 /PRNewswire-FirstCall/ -- Charming Shoppes,
Inc., (Nasdaq: CHRS), a leading multi-brand, multi-channel specialty
apparel retailer specializing in women's plus-size apparel, announced today
that its Board of Directors is exploring a broad range of operating and
strategic alternatives for its non-core misses apparel catalog titles in
order to provide a greater focus on its core brands, Lane Bryant,
Catherines and Fashion Bug, and to enhance shareholder value. The Company
has retained Banc of America Securities and Lehman Brothers as its
financial advisors in connection with this process. The Company noted that
there can be no assurance that this process will result in any specific
course of action or transaction. The Company does not intend to comment
further on this evaluation until final determinations have been made.
Dorrit J. Bern, Chairman, Chief Executive Officer and President of
Charming Shoppes, Inc. stated, "Our commitment to our multi-brand, multi-
channel strategy remains a key element of our long term strategy. Our core
plus apparel brands possess leading market positions and strong long-term
growth opportunities, and we will continue to utilize our
direct-to-consumer infrastructure to further develop these core brands. We
have received a number of inquiries from qualified third parties and are
evaluating several alternatives for our non-core apparel catalog titles
which would allow us to focus exclusively on and accelerate the growth of
our core plus apparel businesses, with the goal of enhancing shareholder
value." Bern continued, "Additionally, despite our strong liquidity, which
includes cash on the balance sheet and a fully-committed line of credit, we
have made the generation and conservation of cash a priority during the
current economic downturn. To that end, our ongoing review of our
operations and strategic assets has determined that we are able to commit
to further reduce our budgeted capital expenditures by an additional $20
million during the current fiscal year, which will be generated from both
reduced spending on store infrastructure and growth and from further
capital reductions in non-critical infrastructure improvements. This
reduction is in addition to our previously announced reduction of $43
million for fiscal year 2009. In total, this $63 million reduction in
planned capital spending for the current year now represents a decrease of
nearly 50% compared to our fiscal year 2008 capital expenditures.
"Further," Bern stated "we believe a refinancing of certain of our real
estate assets would generate meaningful additional net cash proceeds to the
Company. As a result, we anticipate executing on this refinancing during
the second quarter of the current fiscal year."
At February 2, 2008, Charming Shoppes, Inc. operated 2,409 retail
stores in 48 states under the names LANE BRYANT(R), FASHION BUG(R), FASHION
BUG PLUS(R), CATHERINES PLUS SIZES(R), LANE BRYANT OUTLET(R), PETITE
SOPHISTICATE(R) and PETITE SOPHISTICATE OUTLET(R). Apparel, accessories,
footwear and gift catalogs, including the following titles, are operated by
Charming Shoppes' Crosstown Traders: Lane Bryant Woman, Old Pueblo Traders,
Bedford Fair, Willow Ridge, Lew Magram, Brownstone Studio, Intimate Appeal,
Monterey Bay Clothing Company, Coward Shoe and Figi's. Please visit
http://www.charmingshoppes.com for additional information about Charming Shoppes,
Inc.
This press release contains certain forward-looking statements
concerning the Company's operations, performance, and financial condition.
Such forward- looking statements are subject to various risks and
uncertainties that could cause actual results to differ materially from
those indicated. Such risks and uncertainties may include, but are not
limited to: the failure to consummate our identified strategic solution for
our non-core misses apparel catalog titles and the refinancing of certain
real estate assets, the failure to effectively implement our planned cost
and capital budget reduction plans, the failure to effectively implement
the Company's plans for consolidation of the Catherines Plus Sizes brand, a
new organizational structure and enhancements in the Company's merchandise
and marketing, the failure to generate a positive response to the Company's
new Lane Bryant catalog and the Lane Bryant credit card program, the
failure to implement the Company's business plan for increased
profitability and growth in the Company's retail stores and direct-
to-consumer segments, the failure to successfully implement the Company's
expansion of Cacique through new store formats, the failure to achieve
improvement in the Company's competitive position, adverse changes in costs
vital to catalog operations, such as postage, paper and acquisition of
prospects, declining response rates to catalog offerings, the failure to
maintain efficient and uninterrupted order-taking and fulfillment in our
direct-to-consumer business, changes in or miscalculation of fashion
trends, extreme or unseasonable weather conditions, economic downturns,
escalation of energy costs, a weakness in overall consumer demand, the
failure to find suitable store locations, increases in wage rates, the
ability to hire and train associates, trade and security restrictions and
political or financial instability in countries where goods are
manufactured, the interruption of merchandise flow from the Company's
centralized distribution facilities, competitive pressures, and the adverse
effects of natural disasters, war, acts of terrorism or threats of either,
or other armed conflict, on the United States and international economies.
These, and other risks and uncertainties, are detailed in the Company's
filings with the Securities and Exchange Commission, including the
Company's Annual Report on Form 10-K for the fiscal year ended February 2,
2008 and other Company filings with the Securities and Exchange Commission.
Charming Shoppes assumes no duty to update or revise its forward-looking
statements even if experience or future changes make it clear that any
projected results expressed or implied therein will not be realized.
On April 2, 2008, Charming Shoppes, Inc. filed a definitive proxy
statement with the Securities and Exchange Commission (the "SEC") in
connection with the 2008 Annual Meeting of Shareholders of Charming
Shoppes, Inc. and began the process of mailing its definitive proxy
statement and a GOLD proxy card to shareholders. Charming Shoppes'
shareholders are strongly advised to read Charming Shoppes' proxy statement
as it contains important information. Shareholders may obtain an additional
copy of Charming Shoppes' definitive proxy statement and any other
documents filed by Charming Shoppes with the SEC for free at the SEC's
website, http://www.sec.gov, or at Charming Shoppes' website at
http://www.charmingshoppes.com. In addition, copies of Charming Shoppes proxy
materials, along with a GOLD proxy card, may be requested at no charge by
contacting MacKenzie Partners, Inc. at 1-800-322-2885 or via email at
charming@mackenziepartners.com. Detailed information regarding the names,
affiliations and interests of individuals who are participants in the
solicitation of proxies of Charming Shoppes' shareholders is available in
Charming Shoppes' definitive proxy statement filed with the SEC on April 2,
2008.
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SOURCE Charming Shoppes, Inc.
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Related links:
http://www.charmingshoppes.com
CONTACT:
Investors and Analysts: Gayle M. Coolick,
Director of Investor Relations of Charming Shoppes, Inc.,
+1-215-638-6955, or Media: Matthew Sherman of Joele Frank,
Wilkinson Brimmer Katcher, +1-212-355-4449
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