The agreement, which becomes effective April 1, allows Charming Shoppes to open its Lane Bryant chain of women's clothing outlets in the stores under the Lane Bryant Outlet banner after Casual Corner Annex closes its outlet shops early next year. Charming Shoppes said it expects to open all 75 stores as Layne Bryant Outlets in the second and third quarter of 2006.

"We are delighted to be in a position to execute on our strategy to enter this important channel and immediately increase our market position, as well as expand our Lane Bryant brand, " Dorrit J. Bern, chairman, chief executive officer and president of Charming Shoppes Inc. said in a statement announcing the lease takeover. "This agreement givesour flagship chain a significant presence in many of the country's leading outlet centers, a distribution channel that we have targeted for additional growth within the Lane Bryant brand."

Under terms of the agreement with Casual Corner Annex's parent company, Enfield, CT-based Retail Brand Alliance Inc., Charming Shoppes will acquire the leases, leasehold improvements and fixtures for the 75 stores in exchange for $2.8 million. One opened, the company said it expects the stores will operate at revenue and operating margin levels that meet or exceed Lane Bryant's average retail store units.

Charming Shoppes currently owns 2,269 stores under the names Lane Bryant, Fashion Bug, Fashion Bug Plus and Catherines Plus Sizes. The company also owns catalogues under the Old Pueblo Traders, Bedford Fair, Willow Ridge, Lew Magram, Brownstone Studio, Regalia, Intimate Appeal, Monterey Bay Clothing Company, Coward Shoe and Figi's logos.