Retailers, consumers and prices
Check Out Line: A private Charlotte Russe
Private equity firm Advent International Corp will buy the mall-based specialty apparel retailer for about $380 million and take it private, Charlotte Russe said on Monday.
Advent says it has significant experience in the retail arena with investments in companies like yogawear maker Lululemon Athletica, European discounter Takko and French designer Gerard Darel.
Any expertise on Advent’s part will only help Charlotte Russe, which like other apparel companies has faced challenges in the past months , as the recession makes shoppers more frugal.
In the fiscal third quarter, Charlotte Russe posted a 4.9 percent sales increase, but same-store sales fell 3.6 percent.
The deal, valued at $17.50 per share, was applauded by investors who have already shown their support for the company’s steps to explore strategic alternatives, including selling itself – a move it announced earlier this year.
“After careful consideration of a full range of strategic alternatives, including an extensive publicly announced sale process, we are pleased to have reached this agreement with Advent,” said Charlotte Russe Chairman Jennifer Salopek.
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