February 6, 2008
Charming Shoppes Inc announced further initiatives and actions being taken as a result of the Company's ongoing business review and in response to the continuing weak retail and economic environment in which the Company is currently operating. These actions are being taken in order to streamline business operations, reduce SG&A and capital expenditures, improve cash flow, and enhance shareholder value, and include:
• The elimination of approximately 150, or 13%, of corporate and field management positions, which was completed as of January 31, 2008, and together with the Company's announcement to relocate its Catherines home operations to Bensalem, results in an aggregate reduction of approximately 200 full-time positions;
• A decrease of more than $40 million in the capital budget for fiscal year 2009, representing a 30% decrease from fiscal year 2008, primarily through a significant reduction in the number of planned store openings for fiscal year 2009;
• The closing of approximately 150 underperforming stores, including approximately 100 stores at the Fashion Bug chain; and,
• The closing of the Petite Sophisticate full-line retail concept.
Dorrit J. Bern, Chairman, Chief Executive Officer and President of Charming Shoppes Inc stated, "As part of our ongoing review of our operations, especially in this challenging environment, we are taking a number of additional actions to improve profitability and enhance shareholder value.
"In November 2007, we announced the execution of a number of initiatives which had been under review during the last fiscal year, including decreases in inventory levels, reductions of capital expenditures, share repurchases, and the relocation of our Catherines' Memphis, TN operations to our Bensalem, PA offices.
Charming Shoppes Inc
Source @ Fibre2fashion
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