Charming Shoppes to sell Fashion Bug chain

Posted: December 01, 2011

Charming Shoppes Inc., the Bensalem-based women's apparel retailer that has struggled unprofitably for several years, said Thursday that it would sell its Fashion Bug chain and that it had retained Barclays Capital to perform a strategic review of its operations.

The announcement came as the corporation reported yet another unprofitable quarter: Net sales during the period ending Oct. 29 dropped to $429.7 million, compared with $463.6 million the same period a year earlier.

The company reported a net loss of $13 million, or 11 cents a share, compared with a net loss of $18.8 million, 16 cents a share, a year ago.

By hiring Barclays, Charming Shoppes said it hoped to "determine how best to enhance shareholder value."

Plans include divesting the Fashion Bug chain while trying to "accelerate the growth" of its Lane Bryant brand.

Shares were up 49 cents, or 12 percent, to $4.37, early this afternoon.


Contact staff writer Maria Panaritis at 215-854-2431 or mpanaritis@phillynews.com or @panaritism on Twitter.

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