Forever 21 will convert 24 of the Rampages by July 5 and the remaining stores by July 31. Charlotte Russe took $22.5-million charge on Rampage during the quarter ended March. Executives expect the deal to close some time between now and Sept. 30.
Forever 21, based in Los Angeles, made a similar deal last year when it acquired the 243-store Gadzooks chain out of bankruptcy for $33 million in February of last year. The company operates about 350 stores in all under the Forever 21, Gadzooks and Fashion XXI names.
Charlotte Russe operates 360 of its namesake mall-based stores, which are geared toward women in their teens and early 20s. The company's same-store sales rose 16.1% year over year during its most recent quarter, which ended March 25. Management plans to open about 50 stores over the next year.
Though Rampage represented 16% of its store count during the quarter, it only took in 10% of the company's revenues. During the first half of the fiscal year the chain lost $9 million.
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