Mall-based specialty retailer of fashionable Charlotte Russe Holding Inc announced that it has entered into an agreement to sell certain Rampage store assets to Forever 21 Retail, Inc.
Included in the transaction are leasehold interests, store fixtures and equipment for 44 store locations operating under the Rampage store name. The Company will receive approximately $14 million of sales proceeds from this all-cash transaction, subject to and contingent upon the satisfaction of certain conditions.
As reported at the end of our second quarter ended March 2006, the Rampage business assets were essentially written down to zero as a result of the $22.5 million pre-tax and non-cash impairment charge. The sale transaction announced today is expected to be reported in the fourth quarter of fiscal 2006 which began on June 25th and ends on September 30th.
Of the 44 stores subject to the transaction, it is expected that 24 will cease to operate as Rampage stores on or before July 5, 2006, and the remaining 20 stores would cease to operate as Rampage stores on or before July 31, 2006.
With respect to the 20 Rampage stores not included in this transaction, the Company intends to convert approximately 4 stores into Charlotte Russe locations. It is our intention to ultimately dispose of the remaining Rampage stores.
Charlotte Russe Holding Inc is a mall-based specialty retailer of fashionable, value-priced apparel and accessories targeting young women in their teens and twenties. At June 24, 2006 the Company operated 424 stores in 43 states and Puerto Rico consisting of 360 Charlotte Russe stores and 64 Rampage stores. The Company expects to open 40 new Charlotte Russe stores during the fiscal year ending in September and at least 50 new Charlotte Russe stores in fiscal 2007.
Charlotte Russe Holding Inc
marketing@alchempro.com
