The Wall Street Journal-20080206-Charming to Close Nearly 150 Stores

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Charming to Close Nearly 150 Stores

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Charming Shoppes Inc. will close nearly 150 underperforming stores and shutter its new Petite Sophisticate chain as the women's apparel retailer continues to restructure.

A group of investors with a 7.9% stake last month nominated its own slate of three directors, saying it was concerned with Charming Shoppes' business strategy, capital spending and "poorly performing stock price."

Among the stores being closed are about 100 Fashion Bug shops. Charming Shoppes also said 13% of its corporate and field management positions have been cut, eliminating 200 full-time positions.

The company, which specializes in plus-size apparel and owns the Lane Bryant chain, also cut its capital budget by 30% for the just- started fiscal year, which will result in a 50% drop in new-store openings. As of Nov. 3, Charming Shoppes operated 2,453 stores in 48 states.

The company also said Chief Operating Officer Joseph M. Baron will take over as president of the retail business group for Diane M. Paccione, who is leaving to assume the position of chief executive at Deb Shops Inc.