Retail chain Charming Shoppes is to elect two committee nominees as part of a deal to resolve the proxy contest relating to the company's 2008 shareholder meeting next month.

Under the terms of the agreement, the company will nominate to its board of directors two management nominees, CEO Dorrit J Bern and Alan Rosskamm; two committee nominees, Arnaud Ajdler and Michael C Appel; and two experienced retail executives, Richard W Bennet III and Michael Goldstein.

Shareholder group Crecendo, which led the committee, started its contest in January when it aired concern about the company's recent performance and falling stock price.

It sought to exert greater influence by having three representatives elected to the Charming Shoppes board.

However, last week the company rejected this and offered to elect one of the representatives - Appel - alongside two independent candidates of its own choosing: Bennet and Goldstein.

This offer was quickly rejected but according to a statement today (9 May), the company and committee have now agreed to vote their shares in favour of two committee nominees at the meeting on 26 June.

It means the company's board will be expanded to 11 directors, ten of whom will be independent.