Speaking on behalf of the Charming Shoppes' Board of Directors,
Charming Shoppes' directors, nominated for re-election, have extensive public company experience as well as retail industry backgrounds:
-- Dorrit J. Bern, Charming Shoppes' Chairman, President and Chief Executive Officer, who has led the Company since August 1995 and whose experience in the retail apparel industry spans 35 years. In its report, RiskMetrics noted that Dorrit Bern's 'experience at the company, in particular during the last economic downturn, and strong retail background benefit the Board's composition.'* -- Alan Rosskamm, former Chairman and Chief Executive Officer, and a current director of Jo-Ann Stores, a leading U.S. retailer of fabrics and sewing supplies, whose experience in the retail industry spans 30 years. -- M. Jeannine Strandjord, former Senior Vice President and Chief Integration Officer of Sprint Corporation, the global communications company, and a former retail finance executive (Vice President, Finance and Expense Control) for Macy's Midwest.
Commenting on the dissident group's nominees, the Company issued the following statement:
The principals of the Crescendo and Myca hedge funds -- as they have done at other publicly-traded companies -- are advocating a risky and imprudent short-term financial reengineering scheme at Charming Shoppes with the goal of diverting corporate cash to buy back stock. These hedge funds have still not advocated any new ideas to navigate the Company through the current economic environment or create long-term shareholder value. RiskMetrics correctly concluded that one of the dissident group's nominees, Robert Frankfurt, 'does not [have] (sic) relevant industry experience'* and should not be included on the Board. However, we believe that RiskMetrics missed the mark with respect to the dissident group's two other nominees, Arnaud Ajdler and Michael Appel. -- Arnaud Ajdler, an employee of the New York City-based activist hedge fund Crescendo Partners, has limited management and operating experience and, we believe, a limited understanding of the retail industry. Ajdler has a history of being a disruptive and divisive board member at other public companies. Furthermore, after threatening a proxy fight, Ajdler recently became a board member of a competitor of Charming Shoppes. If elected to our Board, we strongly believe this would seriously compromise his independence and his fiduciary duty to serve in the best interests of all Charming Shoppes shareholders. -- Michael Appel's retail experience has been primarily limited to small companies in restructuring or Chapter 11. Furthermore, Appel has no experience as a senior executive of a public company and no board experience. We think RiskMetrics is incorrect to equate the qualifications of Appel with those of Charming Shoppes' directors. * Permission to use quotations was neither sought nor obtained. In summary, shareholders should recognize that the dissident's nominees have limited relevant experience, bring no new ideas to Charming Shoppes, and if elected, we believe they would advance a short-term financial reengineering scheme that would compromise the implementation of our strategy and undermine the future growth of Charming Shoppes.
Charming Shoppes recommends that all shareholders support its Board of Directors and reject all of the dissident group's nominees. It is important to remember that only the latest dated validly executed and timely received proxy counts in a contested election such as this. Vote today by telephone or internet to be sure your proxy is received in time to be counted. Follow the simple voting instructions contained on the GOLD proxy card or contact MacKenzie Partners, Inc., which is assisting the Company in this matter, toll-free at (800) 322-2885 or at charming@mackenziepartners.com.
Shareholders are urged to vote only Charming Shoppes' GOLD proxy card and to discard the dissident group's white proxy card. If shareholders have previously voted a white card, even to withhold their vote from the dissident group's nominees, they are urged to please take the time today to vote the GOLD proxy card.
At
Forward-Looking Statements
This press release contains certain forward-looking statements concerning
the Company's operations, performance, and financial condition. Such forward-
looking statements are subject to various risks and uncertainties that could
cause actual results to differ materially from those indicated. Such risks and
uncertainties may include, but are not limited to: the failure to consummate
our identified strategic solution for our non-core misses apparel catalog
titles and the refinancing of certain real estate assets, the failure to
effectively implement our planned cost and capital budget reduction plans, the
failure to effectively implement the Company's plans for consolidation of the
Catherines Plus Sizes brand, a new organizational structure and enhancements
in the Company's merchandise and marketing, the failure to generate a positive
response to the Company's new Lane Bryant catalog and the Lane Bryant credit
card program, the failure to implement the Company's business plan for
increased profitability and growth in the Company's retail stores and direct-
to-consumer segments, the failure to successfully implement the Company's
expansion of Cacique through new store formats, the failure to achieve
improvement in the Company's competitive position, adverse changes in costs
vital to catalog operations, such as postage, paper and acquisition of
prospects, declining response rates to catalog offerings, the failure to
maintain efficient and uninterrupted order-taking and fulfillment in our
direct-to-consumer business, changes in or miscalculation of fashion trends,
extreme or unseasonable weather conditions, economic downturns, escalation of
energy costs, a weakness in overall consumer demand, the failure to find
suitable store locations, increases in wage rates, the ability to hire and
train associates, trade and security restrictions and political or financial
instability in countries where goods are manufactured, the interruption of
merchandise flow from the Company's centralized distribution facilities,
competitive pressures, and the adverse effects of natural disasters, war, acts
of terrorism or threats of either, or other armed conflict, on
Additional Information
On
SOURCE Charming Shoppes, Inc.