Hedge funds gain seats on board of Charming Shoppes Inc.
Friday, May 9, 2008 : PermalinkHedgeCo.Net (West Palm Beach) - The battle between Charming Shoppes Inc. and the two hedge funds who wished to gain control the company has finally come to an end. A settlement was reached at the Annual Meeting of Shareholders yesterday, in which Charming Shoppes Inc., along with Crescendo Partners and Myca Partners, came to an agreement on who would fill the board seats.
Dorrit J. Bern, Chairman and Chief Executive Officer, said, "We are pleased to have reached this agreement with the Committee, which we believe is in the best interests of the Company and all Charming Shoppes shareholders,” said Dorrit J. Bern, Chairman and Chief Executive Officer of Charming Shoppes.
The agreement entails nominating to the Board of Directors two of Charming Shoppes’ management team, Dorrit J. Bern, the Company’s Chairman, President and Chief Executive Officer and Alan Rosskamm.
The two members from the hedge funds who will receive seats are Arnaud Ajdler, Managing Director of Crescendo and Michael C. Appel, Managing Director of Quest Turnaround Advisors.
In addition, there will be two experienced retail executives elected to the board; Richard W. Bennet III, former Vice Chairman of The May Department Stores Company and Michael Goldstein, former Chairman and Chief Executive Officer of Toys "R" Us, Inc.
Eric Rosenfeld, President and CEO of Crescendo Partners said, “Our nominees, Arnaud Ajdler and Michael Appel, look forward to working diligently and constructively with the other members of the Board to maximize shareholder value. This agreement would not have been possible without the tremendous support we received from the Company’s shareholders."
Charming Shoppes Inc. supplies clothing to various outlets such as Fashion Bug and Lane Bryant. They operate 2,410 stores in 48 states.
Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net
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