Attached files
| file | filename |
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| 8-K - FORM 8-K OCTOBER 30, 2009 - CHARMING SHOPPES INC | form8koct302009.htm |
| EX-10.4 - EXHIBIT 10.4 OCTOBER 30, 2009 - CHARMING SHOPPES INC | exhibit104oct302009.htm |
| EX-10.3 - EXHIBIT 10.3 OCTOBER 30, 2009 - CHARMING SHOPPES INC | exhibit103oct302009.htm |
| EX-10.2 - EXHIBIT 10.2 OCTOBER 30, 2009 - CHARMING SHOPPES INC | exhibit102oct302009.htm |
| EX-10.7 - EXHIBIT 10.7 OCTOBER 30, 2009 - CHARMING SHOPPES INC | exhibit107oct302009.htm |
| EX-10.1 - EXHIBIT 10.1 OCTOBER 30, 2009 - CHARMING SHOPPES INC | exhibit101oct302009.htm |
| EX-10.6 - EXHIBIT 10.6 OCTOBER 30, 2009 - CHARMING SHOPPES INC | exhibit106oct302009.htm |
| EX-10.5 - EXHIBIT 10.5 OCTOBER 30, 2009 - CHARMING SHOPPES INC | exhibit105oct302009.htm |
EXHIBIT
99.1
FOR
IMMEDIATE RELEASE
CHARMING
SHOPPES, INC. ANNOUNCES COMPLETION OF SALE OF PRIVATE LABEL CREDIT CARD PROGRAM
TO ALLIANCE DATA; ANNOUNCES APPOINTMENT OF GLOBAL SOURCING
EXECUTIVES
BENSALEM,
Pa., November 2, 2009, Charming Shoppes, Inc. (Nasdaq: CHRS), a leading
multi-brand apparel retailer specializing in women's plus apparel today
announced the completion of the sale of Charming Shoppes’ (the “Company”) credit
card receivables programs to Alliance Data Systems Corporation (“Alliance
Data”). As previously announced, Charming Shoppes and Alliance Data
have also entered into a ten-year operating agreement for the servicing of
Charming Shoppes’ private label credit card receivables
program. Additionally, the Company announced today that it has
strengthened its global sourcing team through the addition of four brand
sourcing executives.
Charming
Shoppes received net cash proceeds of approximately $136 million related to the
credit card receivables transaction. This transaction consisted of
the sale of Charming Shoppes’ private label credit card portfolio, along with
certain other assets and liabilities that are required to support these card
programs, and the monetization of Charming Shoppes’ consolidated balance sheet
asset “Investment in Asset-Backed Securities.” Gross proceeds from the
transaction were approximately $166 million, of which approximately $30 million
was utilized to fund the termination of contractual obligations related to the
credit card receivables programs and exit costs. Previously, Charming
Shoppes’ Investment in Asset-Backed Securities was held on its consolidated
balance sheet. Its off-balance sheet securitization funding facilities were held
in the Charming Shoppes Master Trust. Alliance Data has assumed the
operation of this Trust and all funding responsibility in support of the credit
card receivables program.
Jim
Fogarty, President and Chief Executive Officer of Charming Shoppes, Inc.
commented, “We are pleased to have closed this transaction with Alliance
Data. The transaction benefits Charming Shoppes and our shareholders,
first, by enabling us to further focus on our core business, second, by removing
the financing risk associated with both the credit card receivable
securitization program and the underlying credit card portfolio, and third, by
further bolstering our strong liquidity profile. We view our private
label credit card program as an integral component of our retailing strategy,
and continuing to deliver superior value and service to our 4.5 million active
private label credit customers as key to our success. With Alliance
Data as our strategic partner, we believe we can continue to deliver for our
customer.”
Under the
terms of the operating agreement, Alliance Data has assumed the operation of
Charming Shoppes’ private label credit card programs for its Lane Bryant,
Fashion Bug and Catherines brands. Alliance Data will provide private
label credit card services including account acquisition and activation; card
authorization; private label credit card issuance; statement generation;
remittance processing; customer service functions and marketing services, as
well as receivables funding.
To ensure
continuity in customer service and collections, Alliance Data will maintain and
operate Charming Shoppes’ existing Milford, Ohio facility. Charming Shoppes will
continue to manage credit marketing strategy for its retail brands.
Eric M.
Specter, Executive Vice President and Chief Financial Officer of Charming
Shoppes, Inc. commented, “The Company will receive payments from Alliance Data
based on credit sales generated by the private label credit card portfolio.
These payments are expected to substantially replace the Company's net credit
contribution related to its credit card portfolio, based on the trailing twelve
months ended August 1, 2009.”
BofA
Merrill Lynch and Barclays Capital served as financial advisors to Charming
Shoppes, Inc. on the transaction for the sale of the Company’s credit card
receivables program.
Charming
Shoppes also announced today it has strengthened its global sourcing team
through the addition of four brand sourcing executives to the
organization.
Jim
Fogarty commented, “Improving our global sourcing – our strategies, our
execution, and accelerating our drive for superior product value, while
improving “like for like” cost of goods sold savings across all of our brands –
has been one of my key initiatives for our organization. Each of our new brand
sourcing executives are charged with developing a brand appropriate sourcing
strategy and will work together with our head of global sourcing and our brand
teams to execute these strategies and optimize and leverage our vendor
base. I am very pleased with the quality of the sourcing talent we
are fielding and am happy to welcome each of them to Charming
Shoppes.”
The
Company’s appointments included:
Roland
Medrano, Senior Vice President, Sourcing, Lane Bryant – Roland joins Lane Bryant
from Gear for Sports where he held the position of Senior Vice President of
Supply Chain for six years, responsible for Global Sourcing, Inventory
Management, Quality Assurance, Corporate Social Responsibility, Customs &
Logistics and eight international buying offices. Prior to Gear for
Sports, Roland led the Sourcing function at JCPenney and had VP responsibility
for Sourcing and Production at Gymboree, Young Stuff Apparel and
Speedo.
Larry
Burak, Senior Vice President, Sourcing, Fashion Bug – Larry has built a
successful 30+ year career in global sourcing, manufacturing and operations. His
most recent role was as Senior Vice President, Chief Operating Officer with
Warnaco Swimwear Group where he was responsible for operations in both the
eastern and western hemispheres. Larry’s career also includes senior
leadership roles with Liz Claiborne, Guess Jeans, Limited and
Kellwood.
Donna
Perri, Vice President, Sourcing, Catherines – Donna joins Catherines from
Talbots where she was most recently Vice President of Global Sourcing for all
woven categories for the Talbots Brand and Premium Outlets. Before
joining Talbots, Donna was Senior Director, Product Development, Production and
Sourcing at Guess?Inc, and Director of Global Sourcing and Product Development,
Wovens for one year at Ann Taylor, and six years in their Loft division during
its formative years.
John
Gambino, Vice President, Sourcing, Lane Bryant Outlet – Prior to joining Lane
Bryant Outlet, John’s most recent role was Global Sourcing/Manufacturing and
Product Development Director at Liz Claiborne. His prior positions
during his 17-year career at Liz included Director of Technical Service and
Director Corporate Quality Assurance. Earlier in his career, John was
Production Manager at Cattiva Outerwear and Production, Manufacturing and
Quality Manager at Bert Newman in New York.
About
Charming Shoppes, Inc.
Charming
Shoppes, Inc. (NASDAQ: CHRS) is a leading multi-brand specialty apparel retailer
primarily focused on plus-size women's apparel and the parent company of Lane
Bryant, Fashion Bug, Catherines Plus Sizes, Figi’s and Petite Sophisticate
Outlet. At August 1, 2009, Charming Shoppes, Inc. operated 2,258
retail stores in 48 states under the names LANE BRYANT®, LANE BRYANT CACIQUE®,
LANE BRYANT OUTLET®, FASHION BUG®, FASHION BUG PLUS®, CATHERINES PLUS SIZES®,
and PETITE SOPHISTICATE OUTLET®. The Company also operates the
Figi’s® Gifts in Good Taste® catalog, specializing in holiday fare, gift-giving
convenience, and exclusive and personalized items. Headquartered in Bensalem,
PA, Charming Shoppes employs approximately 26,000 employees
worldwide. Please visit www.charmingshoppes.com
for additional information about Charming Shoppes, Inc. and www.lanebryant.com,
www.fashionbug.com,
www.catherines.com
and www.figis.com to
learn about our brands.
Safe
Harbor Statement
This
press release contains certain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 concerning the Company's
operations, credit card receivables program, appointments of executives,
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 realize the benefits from the
sale of our credit card program to, and the operation of our credit card program
by, our third-party provider, 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 effectively implement the Company's
plans for a new organizational structure and enhancements in the Company's
merchandise and marketing, the failure to effectively implement the Company's
plans for the transformation of its brands to a vertical specialty store model,
the failure to continue receiving financing at an affordable cost through the
availability of credit we receive from our bankers, suppliers and their agents,
the failure to effectively implement our planned consolidation, cost and capital
budget reduction plans and store closing plans, the failure to achieve increased
profitability through the adoption by the Company's brands of a vertical
specialty store model, the failure to achieve improvement in the Company's
competitive position, 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 January 31, 2009, our report on Form 8-K dated June 19, 2009,
our Quarterly Reports on Form 10-Q 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.
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CONTACT:
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Gayle
M. Coolick
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|
Vice
President, Investor Relations
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215-638-6955
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