Charming Shoppes Inc. has agreed to acquire direct marketer Crosstown Traders from JPMorgan Partners for $218 million in cash.
Charming — a retail chain specializing in plus size women’s apparel — will also assume Crosstown’s debt in the transaction, which is expected to close during the second quarter.
Crosstown operates 11 catalog titles selling women’s apparel (including plus sizes), footwear and specialty gifts. The company, which posted 2004 revenues of approximately $460 million, will continue to operate as a separate entity, with headquarters in Tucson, AZ. It has four million active customers.
In a statement, Dorrit J. Bern, CEO and president of Charming Shoppes, noted that the acquisition was a key step in the company’s preparation to launch a Lane Bryant catalog in Oct. 2007, when that trademark reverts to Charming.
“The acquisition of Crosstown Traders enables us to enter a new sales channel, [and] quickly and meaningfully advance our strategy for growth as a multi-channel retailer,” said Bern. “Online selling, now available at each of Charming Shoppes’ brands, is experiencing extraordinary growth, which will benefit from Crosstown Traders’ operations and expanded infrastructure.”
Crosstown’s operations include several distribution centers and an 850-seat call center network. Steven Lightman will continue as president of Crosstown Traders. The company was formed in 2002 by JPMorgan Partners, the private equity arm of J.P. Morgan Chase & Co., to acquire Arizona Mail Order Company and Figi’s from Federated Department Stores.
Crosstown’s apparel brands include Old Pueblo Traders, Bedford Fair Lifestyles, Bedford Fair Shoestyles, Willow Ridge, Lew Magram, Brownstone Studio, Regalia, Intimate Appeal, Monterey Bay Clothing Company, and Coward Shoe catalog titles. Figi’s, headquartered in Marshfield, WI, markets food and specialty gift products.
Bensalem, PA-based Charming Shoppes Inc. had net sales of $2.3 billion in fiscal 2005 and currently operates 2,230 stores in 48 states under the names lane Bryant, Fashion Bug, Fashion Bug Plus and Catherine’s Plus Sizes.
Network
