Ascena Retail Group, Inc. (ASNA: Quote) said it has completed its acquisition of Charming Shoppes, Inc., an apparel retailer specializing in women's plus-size apparel. Charming Shoppes shareholders received $7.35 for each share of Charming Shoppes. Charming Shoppes will now operate as a separate subsidiary of Ascena.
Ascena stated that it financed around $900 million transaction through a combination of cash on hand and $325 million of borrowings from its credit facilities.
In addition, Ascena announced that, based on the results of its strategic review of Charming Shoppes' operations, it plans to cease operating and close down Charming Shoppes' FASHION BUG business by early 2013. Charming Shoppes had earlier announced its intention to continue to close certain Fashion Bug stores. Besides, Ascena announced that it is exploring a potential sale of Charming Shoppes' Figi's business, which markets food and specialty gift products.
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by RTT Staff Writer
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