"We've gotten very good cooperation from the landlord community and are looking for more," he said. "We want to give our landlords the chance to keep those stores open by making them cash-flow positive with their cooperation."
If the negotiations are successful, Charming Shoppes might not have to close as many units as anticipated. The biggest opportunities lie in malls, where "rents per square foot are much higher" than community centers, Rosskamm said.
Same-store sales across Charming Shoppes' chains decreased 15% year-over-year during the fourth quarter, while total sales dropped 14% to $631.9 million. It posted a loss of $108.5 million.
Charming Shoppes executives plan to open six stores over the coming year, relocate 12 and have capital expenditures of $24 million. The company currently operates 897 Fashion Bugs, 892 Lane Bryants and 463 Catherines.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
