Charming Shoppes Inc., a direct marketer and retailer of women’s plus-size apparel, has hired Banc of America Securities and Lehman Brothers as financial advisors to help it explore strategic alternatives for its non-core catalogs and to cut spending by an additional $20 million this year.
"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," said CEO Dorrit J. Bern, in a statement.
Charming Shoppes is parent company of catalogers Crosstown Traders, Lane Bryant Woman, Old Pueblo Traders, Bedford Fair, Willow Ridge, Lew Magram, Brownstone Studio, Intimate Appeal, Monterey Bay Clothing Co., Coward Shoe and Figi's.
The Bensalem, PA firm plans to cut an additional $20 million in expenses this fiscal year from both reduced spending on store infrastructure and growth and from further capital reductions in "non-critical" infrastructure improvements.
These cuts come on top of an already-planned $43 million reduction, according to the company.
The firm also plans to refinance some of its real estate assets.
