Wednesday, March 19, 2008

Bad financials leads to store closings

I came across a news release today from Charming Shoppes, the company that owns Fashion Bug, Lane Bryant and owns the trademark and internet domain rights to the Petite Sophisticate name. Faced with growing losses, the company announced this week that it would close 150 stores, including 100 of its Fashion Bug locations and its Petite Sophisticate concept.

Charming Shoppes posted a loss of $127.6 million for the fourth quarter as sales fell, compared with net income of $24.9 million a year earlier. Sales for the three months ended Feb. 2 fell 10 percent
According to the Charming Shoppes web site, it operates 44 Petite Sophisticate outlet stores in 23 states and in October 2007, it opened its first Petite Sophisticate full-line store in Arlington, Texas. It also has an online web site.

I'm not sure if the web site will be shut down as well but I would assume as much.

I've never been a big fan of their clothes, but I known many petite women out there are loyalists. I wonder if another company will grab the rights to the brand.

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