Rampage Closes, Forever 21 Moves In
Charlotte Russe Holdings, Inc., is closing its Rampage stores, which it has owned for nearly 10 years.
Charlotte Russe said it is selling the leases, store fixtures and equipment for 44 of its Rampage stores to Los Angeles–based Forever 21 Inc. Charlotte Russe said the growing Los Angeles retailer that caters to juniorwear customers would pay $14 million for the Rampage stores, which also were targeted to trend-driven teens.
Charlotte Russe, based in San Diego, Calif., bought the Rampage stores in 1997 from Larry Hansel, founder of Rampage Clothing Co. Charlotte Russe plans to convert four Rampage stores into new Charlotte Russe stores. The company will then liquidate the remaining 16 stores, according to a company statement. Charlotte Russe Chief Financial Officer Dan Carter did not return calls requesting comment on the sale or liquidation.
Forever 21 will use half of its new real estate holdings to launch a new concept store for men and women. The new concept is scheduled to debut in September or October, according to Larry Meyer, the company’s chief financial officer. “We’ll have new fashion. We’ll give more choices,” he noted. The other half of its new stores will be converted into Forever 21 stores.
While the sun sets on the Rampage nameplate, Charlotte Russe has plans for expanding its own doors. For its 2007 fiscal year, the company will open 50 new stores. The company currently runs 360 Charlotte Russe stores across the United States. It specializes in fashionable, value-driven clothes for women in their teens and 20s.
—Andrew Asch
