FOR
IMMEDIATE RELEASE
CHARMING
SHOPPES COMMENTS ON GLASS LEWIS REPORT
INDEPENDENT
PROXY ADVISOR REJECTS
DISSIDENT
GROUP’S TWO HEDGE FUND NOMINEES
Bensalem,
PA, April 24, 2008 – Charming Shoppes, Inc. (Nasdaq: CHRS) today announced that
Glass Lewis & Co. has recommended that shareholders reject Arnaud Ajdler and
Robert Frankfurt, the two hedge fund director candidates nominated by the
Crescendo Partners and Myca Partners hedge funds, for election to Charming
Shoppes’ Board of Directors at the Company’s 2008 Annual Meeting of
Shareholders.
Charming
Shoppes today issued the following statement:
“We are
pleased that Glass Lewis recommended that shareholders not support the dissident
group’s two hedge fund nominees, Ajdler and Frankfurt, neither
of whom has any relevant retail or management experience.
“The
principals of the Crescendo and Myca hedge funds – as they have done at other
publicly-traded companies – are advocating a risky and imprudent short-term
financial reengineering scheme at Charming Shoppes with the goal of leveraging
up the Company and buying back stock. These hedge funds have still
not advocated any new ideas to navigate the Company through the current economic
environment or create long-term shareholder value.
“We
believe, however, that Glass Lewis missed the mark with respect to the dissident
group’s third nominee, Michael Appel. We think Glass Lewis is simply
wrong to equate the qualifications of Appel with those of Charming Shoppes’
directors. Appel’s retail experience has been primarily limited to
small companies in restructuring or Chapter 11. Furthermore, Appel
has no experience as a senior executive of a public company and no Board
experience. On the other hand, Charming Shoppes’ directors are highly
skilled in public company leadership, retail, marketing, operating, finance,
accounting, governance and overall executive management – all areas that are
critical to the continued success of this Company.
“Importantly,
Charming Shoppes’ directors and management team know how to manage successfully
through challenging retail and economic environments. As Glass Lewis
noted in its report, Charming Shoppes ‘has recently taken actions that we
believe will be beneficial for the Company and its shareholders, including
substantial restructuring efforts and tying a significant portion of the CEO’s
compensation to performance.’”*
*
Permission to use quotation was neither sought nor obtained.
Charming
Shoppes recommends that all shareholders support its Board of Directors and
reject all of the dissident group’s nominees. It is important to remember that
only the latest dated validly executed and timely received proxy counts in a
contested election such as this. Vote today by telephone or internet to be
sure your proxy is received in time to be counted. Follow the simple
voting instructions contained on the GOLD proxy card or contact
MacKenzie Partners, Inc., which is assisting the Company in this matter,
toll-free at (800) 322-2885 or charming@mackenziepartners.com.
Shareholders
are urged to vote only Charming Shoppes’s GOLD proxy card and to throw
away the dissident group’s white proxy card. If shareholders have
previously voted a white card, even to withhold their vote from the dissident
group’s nominees, they are urged to please take the time today to vote the GOLD proxy card.
At
February 2, 2008, Charming Shoppes, Inc. operated 2,409 retail stores in 48
states under the names LANE BRYANT(R), FASHION BUG(R), FASHION BUG PLUS(R),
CATHERINES PLUS SIZES(R), LANE BRYANT OUTLET(R), PETITE SOPHISTICATE(R) and
PETITE SOPHISTICATE OUTLET(R). Apparel, accessories, footwear and gift catalogs,
including the following titles, are operated by Charming Shoppes' Crosstown
Traders: Lane Bryant Woman, Old Pueblo Traders, Bedford Fair, Willow Ridge, Lew
Magram, Brownstone Studio, Intimate Appeal, Monterey Bay Clothing Company,
Coward Shoe and Figi's. Please visit http://www.charmingshoppes.com for
additional information about Charming Shoppes, Inc.
Forward-Looking
Language
This
press release contains certain forward-looking statements concerning the
Company’s operations, performance, and financial condition. Such forward-looking
statements are subject to various risks and uncertainties that could cause
actual results to differ materially from those indicated. Such risks and
uncertainties may include, but are not limited to: the failure to effectively
implement the Company’s plans for consolidation of the Catherines Plus Sizes
brand, a new organizational structure and enhancements in the Company’s
merchandise and marketing, the failure to generate a positive response to the
Company’s new Lane Bryant catalog and the Lane Bryant credit card program, the
failure to implement the Company’s business plan for increased profitability and
growth in the Company’s retail stores and direct-to-consumer segments, the
failure to successfully implement the Company’s expansion of Cacique through new
store formats, the failure of changes in management to achieve improvement in
the Company’s competitive position, the failure to successfully implement the
Company’s integration of operations of, and the business plan for, Crosstown
Traders, Inc., adverse changes in costs vital to catalog operations, such as
postage, paper and acquisition of prospects, declining response rates to catalog
offerings, failure to maintain efficient and uninterrupted order-taking and
fulfillment in our direct-to-consumer business, changes in or miscalculation of
fashion trends, extreme or unseasonable weather conditions, economic downturns,
escalation of energy costs, a weakness in overall consumer demand, failure to
find suitable store locations, increases in wage rates, the ability to hire and
train associates, trade and security restrictions and political or financial
instability in countries where goods are manufactured, the interruption of
merchandise flow from the Company’s centralized distribution facilities,
competitive pressures, and the adverse effects of natural disasters, war, acts
of terrorism or threats of either, or other armed conflict, on the United States
and international economies. These, and other risks and uncertainties, are
detailed in the Company’s filings with the Securities and Exchange Commission,
including the Company’s Annual Report on Form 10-K for the fiscal year ended
February 2, 2008 and other Company filings with the Securities and Exchange
Commission. Charming Shoppes assumes no duty to update or revise its
forward-looking statements even if experience or future changes make it clear
that any projected results expressed or implied therein will not be
realized.
Additional
Information
On April
2, 2008, Charming Shoppes, Inc. filed a definitive proxy statement with the
Securities and Exchange Commission (the “SEC”) in connection with the 2008
Annual Meeting of Shareholders of Charming Shoppes, Inc., and began the process
of mailing the definitive proxy statement and a GOLD proxy card to shareholders.
Charming Shoppes’ shareholders are strongly advised to read Charming Shoppes’
proxy statement as it contains important information. Shareholders may obtain an
additional copy of Charming Shoppes’ definitive proxy statement and any other
documents filed by Charming Shoppes with the SEC for free at the SEC’s website
at http://www.sec.gov. Copies of the definitive proxy statement are available
for free at Charming Shoppes’ website http://www.charmingshoppes.com. In
addition, copies of Charming Shoppes’ proxy materials may be requested at no
charge by contacting MacKenzie Partners, Inc. at 1-800-322-2885 or via email at
charming@mackenziepartners.com. Detailed information regarding the names,
affiliations and interests of individuals who are participants in the
solicitation of proxies of Charming Shoppes’ shareholders is available in
Charming Shoppes’ definitive proxy statement filed with SEC on April 2,
2008.
# #
#
CONTACT:
|
Gayle
M. Coolick
Charming
Shoppes, Inc.
Director
of Investor Relations
(215)
638-6955
Steven
R. Wishner
Charming
Shoppes, Inc.
Senior
Vice President,
Finance,
Strategy & Business Development
(215)
633-4899
|
|
Dan
Burch / Jeanne Carr
MacKenzie
Partners, Inc.
(212)
929-5500
Matthew
Sherman / Jen Friedman
Joele
Frank, Wilkinson Brimmer Katcher
(212) 355-4449
|