Bensalem, Pa. Charming Shoppes on Monday announced it has completed the sale of its credit-card receivables programs to Alliance Data Systems Corp. The two companies have also entered into a 10-year operating agreement for the servicing of the retailer’s private-label credit-card receivables program.
Charming Shoppes received net cash proceeds of approximately $136 million related to the credit-card receivables transaction. This transaction consisted of the sale of Charming Shoppes' private-label credit-card portfolio, along with certain other assets and liabilities that are required to support these card programs, and the monetization of Charming Shoppes' consolidated balance sheet asset "Investment in Asset-Backed Securities." Gross proceeds from the transaction were approximately $166 million, of which approximately $30 million was used to fund the termination of contractual obligations related to the credit-card receivables programs and exit costs.
Jim Fogarty, president and CEO of Charming Shoppes, commented: "We are pleased to have closed this transaction with Alliance Data. The transaction benefits Charming Shoppes and our shareholders, first, by enabling us to further focus on our core business, second, by removing the financing risk associated with both the credit-card receivable securitization program and the underlying credit-card portfolio, and third, by further bolstering our strong liquidity profile.
Additionally, Charming Shoppes said that it has strengthened its global sourcing team through the addition of four brand sourcing executives.
The company's appointments included: • Roland Medrano senior VP, sourcing, Lane Bryant. He joins Lane Bryant from Gear for Sports where he held the position of senior VP supply chain.
• Larry Burak, senior VP, sourcing, Fashion Bug. His most recent role was as senior VP, COO with Warnaco Swimwear Group.
• Donna Perri, VP, sourcing, Catherines. She joins Catherines from Talbots where she was most recently VP global sourcing for all woven categories for the Talbots Brand and Premium Outlets.
• John Gambino, VP, sourcing, Lane Bryant Outlet. His most recent role was global sourcing/manufacturing and product development director at Liz Claiborne.