Charming Shoppes Inc. said Tuesday it cut about 200 full-time jobs and will close about 150 underperforming stores to boost profit as consumer spending slows and sales slump.
The retailer said it is also closing its four Petite Sophisticate stores, launched in 2007, and will cut $40 million from its capital budget for fiscal 2009, mostly by cutting planned store openings.
“These were difficult, but necessary actions and we are confident that by streamlining our operations, realigning our field management structure, and reducing the number of positions at our corporate headquarters, we will further strengthen Charming Shoppes' operational and financial performance,” said CEO Dorrit J. Bern.
The jobs that were eliminated include about 150 corporate and field management positions. An additional 50 jobs were lost as a result of the company moving its headquarters to Bensalem.
The stores to be closed include about 100 Fashion Bug locations. Charming Shoppes said in most instances, there are multiple stores in the same areas that can soak up sales from the underperforming locations.
The company estimated that soon-to-close stores generated a loss of about $6 million annually.
