New Management Team Hired to Turn Around Charlotte Russe

The directors of Charlotte Russe Holding Inc. hired a turnaround team on Nov. 12, and the same day, the San Diego–based juniors retailer fielded an offer from two private investment firms to acquire the apparel company. Charlotte Russe also released results for its fiscal fourth quarter on Nov. 12.

The quick blasts of major news did not do much for Charlotte Russe’s stock price. On Nov. 13, the retailer’s stocks dipped 1.69 percent for a closing price of $8.05 per share. Its stock performance might be the latest in several tough months for Charlotte Russe. The company reported a fiscal fourth-quarter loss of $6.6 million. However, the hiring of new executives had Jennifer Salopek, chairman of Charlotte Russe, looking toward a bright future of turning the company into a top-tier specialty retailer. On Nov. 12, the company named former Mervyns President John D. Goodman as the new Charlotte Russe chief executive. Emilia Fabricant, former president of Babystyle, was named president and chief merchandising officer of Charlotte Russe. Frederick G. Silney, former chief financial officer of Guess? Inc., was named chief financial officer. Charlotte Russe had been without a permanent management team since July 20, when former Chief Executive Mark Hoffman announced his retirement. Leonard Mogil, a member of the retailer’s board of directors, had served as the interim chief.

The job of the new team, according to a company statement, will be to redefine the store’s image and better identify what the Charlotte Russe customer needs. The board of directors also called for a better merchandise assortment, as well as improving productivity of back-office support services.

Charlotte Russe also confirmed that private investment firms KarpReilly LLC and H.I.G. Capital LLC made a bid to acquire all of the outstanding shares of the company at a valuation range of between $9 and $9.50 per share. —Andrew Asch