Charming Shoppes Expects Fiscal 1Q Loss

The company said it will work to reduce its inventories and lower its capital expenditures for the fiscal year to about $24 million — a 50 percent cut from the $48 million the company spent in 2008.

The retailer also said it will open about 6 Lane Bryant stores in fiscal 2009 and will relocate 12 stores. Charming Shoppes has also previously said it will close about 100 stores during the year. It also cut 225 jobs, or about 2 percent, of its work force, in January after posting weak holiday sales.

The company's cost-cutting initiatives also include the closure of Figure Magazine, effective immediately, and the closing of the shoetrader.com website in the second half of the year.

The company said it expects to realize cost savings of about $125 million during the current fiscal year.

Chairman Alan Rosskamm, who also serves as interim chief executive, said brand leaders are now also developing merchandising and marketing programs designed to bring in their target customers.

Charming Shoppes added that its $50 million credit card securitization facility has been renewed through March 30, 2010.