Charming Shoppes Inc. has completed its acquisition of Crosstown Traders Inc., which it announced only two weeks ago. Crosstown Traders is a direct marketer of women's apparel, footwear, accessories and specialty gifts that had been owned by JPMorgan Partners, the private equity arm of J.P. Morgan Chase & Co.
Charming Shoppes paid $218 million in cash for Crosstown Traders, plus the assumption of Crosstown Traders' debt of $40 million. The acquisition makes the expanded company the 112th largest online retailer with $49.7 million in e-commerce revenues, according to the 2005 edition of the Internet Retailer Top 400 Guide to Retail Web Sites.
"The acquisition of Crosstown Traders enables us to enter a new sales channel to quickly and meaningfully advance our strategy for growth as a multi-channel retailer. Online selling, now available at each of Charming Shoppes' brands, is experiencing extraordinary growth, which will benefit from Crosstown Traders' operations and expanded infrastructure," said Dorrit J. Bern, chairman, CEO and president of Charming Shoppes.
“The development of Charming Shoppes’ direct-to-consumer operation is a key step in the preparation for the launch of the company's own catalog for the Lane Bryant brand in October 2007, when the Lane Bryant catalog trademark reverts to the company,” Charming Shoppes said in announcing the acquisition.
Steven Lightman will continue as president of Crosstown Traders.
Crosstown Traders is a direct marketer of women's apparel, footwear, accessories and specialty gifts headquartered in Tucson, AZ, with facilities in Phoenix, Greenwich, CT, Carlsbad, CA, Wilmington, NC, and central Wisconsin. The company sells women's apparel through its Old Pueblo Traders, Bedford Fair Lifestyles, Bedford Fair Shoestyles, Willow Ridge, Lew Magram, Brownstone Studio, Regalia, Intimate Appeal, Monterey Bay Clothing Company, and Coward Shoe brands. An additional brand, Figi's, which markets food and specialty gift products, is headquartered in Marshfield, WI.
Charming Shoppes operates 2,235 stores in 48 states under the names Lane Bryant, Fashion Bug, Fashion Bug Plus, and Catherine’s Plus Sizes.
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