Clothing retailer Charlotte Russe Holding Inc. (San Diego, Calif.) has agreed to be acquired by private equity firm Advent International Corp. An affiliate of Advent will pay $380 million for all of Charlotte Russe's shares outstanding and the associated preferred stock purchase rights at a price of $17.50 a share.
The troubled women's clothing retailer began exploring its options, including a possible sale, in January 2009, two months after the company rejected a $200 million buyout bid. In March, the company put itself up for sale.
“After careful consideration of a full range of strategic alternatives, including an extensive, publicly announced sale process, we are pleased to have reached this agreement with Advent,” says Jennifer Salopek, chairman of Charlotte Russe. “Advent’s desire to add Charlotte Russe to its portfolio underscores our solid business model, the talent of our people and the significant progress we have made in transforming Charlotte Russe into a top-tier specialty retailer.”
Over the last several quarters, the company has been working to increase its focus on individual store performance metrics, better merchandising and improving operational performance, profitability and shareholder returns. Founded in 1975, Charlotte Russe operates more than 500 mall-based stores targeting young women in their teens and twenties.