Charming Shoppes Group Seeks Board Seats, Possible Asset Sales
Philadelphia An investor group upset with Charming Shoppes Inc.’s stock performance and growth strategy will seek three board seats, the company said Tuesday.
In a letter to Charming Shoppes dated Jan. 15, the group informed the company of its intention to nominate three people to the board: Michael Appel, a managing director of Quest Turnaround Advisors; Arnaud Ajdler, a managing director of Crescendo Partners II LP; and Robert Frankfurt, president of Myca Partners.
The trio said it was “deeply concerned” about the chain’s current business strategy. The group hopes to “re-focus the company’s business operations and unlock the true intrinsic value of the company.”
Among the recommendations, the group suggested exploring the sale of assets like real estate, credit-card operations or the catalog business; slowing store expansion; streamlining operations and reducing overhead; and buying back shares.
Kmart Pharmacy lowers flu shot price
HOFFMAN ESTATES, Ill. Kmart is lowering the price on flu shots at its pharmacies, the company announced Tuesday.
Customers can now receive a flu shot for just $10 at most Kmart Pharmacies while supplies last. The price in California, Hawaii, Louisiana, Minnesota, Montana, Pennsylvania, Rhode Island, Tennessee, Wisconsin, and Wyoming may be slightly higher due to state regulations.
“People need to remember that flu season is in full swing, and it can strike at any time, so we are lowering prices to encourage more people to do what they can to protect themselves,” said Mark Doerr, RPh, vp of Kmart Pharmacy. “While the flu season has not been as severe as some recent years, the latest CDC updates report that flu activity is on the rise.”
Crescendo seeks Charming Shoppes representation
BENSALEM, Pa. Charming Shoppes Tuesday confirmed that it has received notice that Crescendo Partners II L.P., Series Q, intends to nominate three individuals, including two hedge fund representatives, for election to Charming Shoppes’ board of directors at the company’s 2008 annual meeting of shareholders.
In a statement issued Tuesday, Charming Shoppes board of directors and management team said that they have begun discussions with Crescendo partners and will continue doing so as long as they are constructive. The company added that it will not be distracted by the threat of a proxy contest from a dissident shareholder group.