Christopher & Banks Rejects Unsolicited Proposal
July 09, 2012
Minneapolis-based women's specialty apparel retailer Christopher & Banks Corp. announced that its board of directors—after careful consideration, with the assistance of its outside financial and legal advisors—has rejected Aria Partners' unsolicited proposal to acquire all outstanding stock of the company for $1.75 per share. The board has also reaffirmed its commitment to its new management team's strategic plan, which it said has already begun to demonstrate signs of progress, and said the proposal is not in the best interests of Christopher & Banks and its stockholders. The board believes that the current merchandising and marketing strategies have energized and brought stability to the organization, and are expected to deliver improved sales, margin and cash-flow performance in the second half of fiscal 2012 and beyond. Management's merchandising and marketing Initiatives include reducing the number of styles and SKUs offered in the fall 2012 deliveries and rebalancing the assortment toward more good and better product offerings with fewer best styles; offering an improved price/value proposition for fall with more attractive opening price points and reducing the variety of ticket prices; improving inventory flow beginning with the September assortment by reducing the number of major floor sets by half, while maintaining freshness with deliveries between sets; and developing an enhanced promotional strategy with more targeted, unique promotions and fewer storewide events.