Charlotte Russe Holding Inc. (San Diego) has reportedly received “potential expressions of interest from third parties” as it considers strategic alternatives, including the sale of the company.
The women’s specialty apparel retailer has been in a turnaround effort for roughly a year. In November 2008, it opposed a nearly $200 million takeover offer by two private equity investment firms – KarpReilly LLC (Old Greenwich, Conn.) and H.I.G. Capital Management Inc. (Miami) – saying it wanted to stick to its turnaround plan, though it got some complaints from shareholders over that decision.
Chairman Jennifer Salopek said in a statement that the leadership remains confident in its plan but is “evaluating all alternatives to achieve maximum value for Charlotte Russe shareholders.”
The company also announced a first quarter loss of $2.9 million and forecast a second-quarter loss that was wider than market estimates.
The mall-based retailer operates about 495 Charlotte Russe clothing stores in 45 U.S. states and Puerto Rico offering value-priced fashions for women in their teens and 20s. The company shut down its struggling 64-store Rampage chain in 2006, converting several locations to Charlotte Russe stores.