USA: Charming Shoppes Buys Crosstown Traders For $218m
Plus-size women's apparel chain Charming Shoppes Inc has secured a deal to acquire women's apparel, footwear and specialty gifts marketer Crosstown Traders Inc from JPMorgan Partners, the private equity arm of JP Morgan Chase & Co.Under terms of the deal, Charming Shoppes will pay approximately $218 million in cash for Crosstown Traders, plus the assumption of Crosstown Traders' debt.
The acquisition represents a key step in the company's long-term growth strategy and is expected to be accretive to earnings per share beginning in the current financial year.
Subject to regulatory approval and certain closing conditions, the transaction should be completed during the second quarter of this year.
Charming Shoppes plans to continue to operate CrosstownTraders as a separate entity.
Dorrit Bern, president and chief executive of Charming Shoppes said: "This is a significant milestone in Charming Shoppes Inc's transformation into a multi-channel retailer, and provides us with a highly profitable platform through which we can increase shareholder value".
Dorrit added: "At the same time, this is a key step in our preparation for the launch of our own catalogue for the Lane Bryant brand in October 2007, when the Lane Bryant catalogue trademark reverts to us.
Crosstown Traders operates eleven catalogue titles, with 2004 revenues of approximately $460m.
The majority of Crosstown's revenues are derived from the catalogue sales of women's apparel, of which plus-sizes is an important component, as well as footwear and accessories.
Charming Shoppes Inc was founded in 1940 operates 2,230 stores in the US.
The company yesterday reported a 14 per cent first-quarter net income increase and a 2 per cent net sales increase. First-quarter same-store sales were static from last year.
Fashion retailer Charming Shoppes said it boosted full-year and fourth-quarter 2005 income and sales, driven by good trading at its Lane Bryant and Catherines Plus Sizes brands,...
Women's plus-size apparel company Charming Shoppes has forecasted increased sales and earnings outlook for the upcoming financial year....
Women's retailer Charming Shoppes has appointed a new group divisional president and a subsidiary president....
Plus-size women's apparel retailer Charming Shoppes is to set up 75 outlet stores under its Lane Bryant brand after signing a lease agreement with Retail Brand Alliance....
The following is a general roundup of apparel and shoe chains' November sales results. The list will be updated as new results become available....
Large-size apparel retailer Charming Shoppes has enjoyed a 69 per cent jump in third-quarter profit on higher same-store sales....
The following is a general roundup of apparel and shoe chains' October sales results. The list will be updated as new results become available....
The following is a general roundup of apparel and shoe chains' September sales results. The list will be updated as new results become available....
- Under Armour Lighthouse will disrupt production
- Will new Vietnam wage hinder competitiveness?
- How TAL Apparel is staying ahead of the game
- Digitisation to drive new apparel-making models
- Ethiopia violence undermines sourcing strategies
- Marks & Spencer top for modern slavery reporting
- Bangladesh garment workers rally for higher wages
- MAS Holdings shares commitment to sustainability
- H&M CEO named sustainability leader
- Gap to shutter all UK Banana Republic stores
- Africa-Med strategic sourcing review – comparing East Africa, North Africa and Turkey
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Apparel (GLOBAL) - Industry Report
- Global Sports and Fitness Wear Market 2016-2020