After spurning an unsolicited takeover bid saying it wanted to continue its turnaround goal of becoming a top-tier specialty retailer, Charlotte Russe Holding Inc. of San Diego said that it will become the exclusive distributor for People’s Liberation Inc.’s lines of trendy apparel.
According to terms of a collaborative agreement announced Dec. 18, Charlotte Russe, a value-priced women’s clothing store chain with 500 mall-based stores in the United States and Puerto Rico, will be the only store in North and Central America to sell the premium denim and apparel brands provided by Los Angeles-based People’s Liberation.
“This collaboration represents an important strategic step in redefining the Charlotte brand ,” said Chairwoman Jennifer Salopek.
That means that People’s Liberation jeans, knits and active wear will be pulled from select boutiques and high-end department stores including Nordstrom, Bloomingdales, Neiman Marcus, Kitson, Atrium and Fred Segal.
At the close of trading on Dec. 18 Charlotte Russe’s stock, traded as CHIC on Nasdaq, closed up 14 cents at $6.11 a share. During the last 52 weeks the company’s stock traded as high as $20.61 and as low as $3.98. It posted a net loss of $6.6 million in its fourth quarter ended Sept. 27, despite an 8.6 percent increase in sales to $206.7 million.
In November, KarpReilly Capital Partners and H.I.G. Capital proposed to pay from $9 to $9.50 a share for the company’s 21 million outstanding shares. But Charlotte Russe’s board unanimously rebuffed the bid, saying that it wanted to stick to its turnaround plan that included bringing in new management and transforming the chain into a top-tier specialty retailer.
, Connie Lewis
