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
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, www.sec.gov, or at Charming
Shoppes' website at 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.
SOURCE Charming Shoppes, Inc.
