Alliance Data Acquires $145 Million In Private Label Credit Card Receivables Portfolio, Signs Long-Term Private Label Credit Card Agreement With Leading Women's Specialty Retailer Talbots, Inc.
DALLAS, Sept. 17, 2012 /PRNewswire/ -- Alliance Data Systems Corporation (NYSE: ADS), a leading provider of loyalty and marketing solutions derived from transaction-rich data, today announced its Retail Services business will provide private label credit card services for multichannel retailer The Talbots, Inc., a wholly owned subsidiary of Sycamore Partners' TLB Holdings, LLC. Alliance Data has also acquired the receivables associated with Talbots' existing private label credit card file, and will acquire the credit card accounts, pending regulatory approval.
"Alliance Data has extensive retail expertise and a track record for helping its clients drive sales and increase customer loyalty. This experience combined with their commitment to provide our customers with the same high levels of service they have received historically from Talbots were key factors in the decision to partner with the company on The Talbots private label credit business," said Mike Archbold, chief executive officer and chief financial officer of Talbots. "We look forward to working together with Alliance Data to continue to build long-term customer loyalty and grow the Talbots brand through our Talbots Charge private label credit card and rewards program."
Alliance Data has entered into agreements with The Talbots, Inc., subject to regulatory approval, to manage their private label credit card program and purchase the retailer's existing credit card accounts. Pursuant to such agreements, Alliance Data acquired the receivables related to the portfolio of approximately $145 million. The acquired file carries only a modest level of delinquencies and, as such, Alliance Data believes that its performance will be consistent with traditional expectations.Alliance Data will deliver a marketing-driven private label credit card program that recognizes and rewards Talbots cardholders with a tiered program offering cardholders points-per-dollars spent, plus other perks, to drive brand loyalty and repeat purchases consistent with Talbots' historical program.
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