Charlotte Russe Up for Sale?
It’s a sale or a new retail direction for Charlotte Russe Holding Inc.
On Jan. 21, the board of directors for the San Diego–based juniors retailer announced that it was considering selling its company, including 495 stores in 45 states.
Board Chairman Jennifer Salopek said Charlotte Russe had received interest from unnamed buyers. The retailer retained financial firm Cowen and Company LLC to provide financial counsel and law firms Covington & Burling LLP and Cooley Godward Kronish LLP for legal counsel. However, there is no schedule for a possible sale, Salopek said.
On Nov. 12, Charlotte Russe received an offer by private-investment firm Karp Reilly Capital Partners to purchase all of the outstanding shares of the company.
The Charlotte Russe board also is mulling over a strategic plan to increase long-term growth and profitability for the company. The new plans might be the work of the retailer’s new executive team, helmed by Chief Executive John Goodman, former president of defunct retailer Mervyns.
The announcement follows the Jan. 21 report of poor same-store sales for its first quarter of fiscal 2009. Charlotte Russe’s comparable-store sales decreased 9.1 percent for the first quarter. Goodman blamed the weak economy for the poor performance. He promised improved sales by fall 2009, when the new team’s plans for new brand positioning and merchandise assortments will be in place. —Andrew Asch
