MINNEAPOLIS--Christopher & Banks Corporation (NYSE: CBK), a specialty women's apparel company with more than 800 retail stores, announced today that its subsidiary, Christopher & Banks, Inc., has reorganized and consolidated its field management staff.
In response to an assessment of its overall field management organization, Christopher & Banks, Inc. has streamlined and consolidated its field organization. The key components of the reorganization include:
* Elimination of separate Christopher & Banks and C.J. Banks field
management; districts will now be organized by stores within geographical areas.
* Total number of districts has been reduced to 58, as compared to 89 in
July 2008.
* Total number of regions has been consolidated to three (East, Midwest,
West).
* Total field organization headcount has been reduced by approximately 30
positions as compared to July 2008.
The reorganization and consolidation is anticipated to achieve savings in fiscal 2010 of approximately $2.0 million. The Company also anticipates that during the fourth quarter of fiscal 2009 it will take approximately $400,000 in charges related primarily to severance and other costs necessary to implement the reorganization and consolidation of the field organization.
Gary Thompson, Senior Vice President of Store Operations, said, "The consolidation will result in increased efficiency as districts are now organized by geographic location of stores and no longer by the Christopher & Banks or C.J. Banks brand. In addition, the restructuring will be more cost effective, as it will require far less travel by the district managers as a whole. It is anticipated we will achieve a reduction in overall travel expenses of approximately $1.0 million annually. Most importantly, it will allow district managers the opportunity to spend more of their valuable time working with their team of stores and thus create a sharpened focus on delivering a consistent message to our stores and better on-message branding execution."
Lorna Nagler, President and Chief Executive Officer, indicated that, "The consolidation is reflective of our philosophy to implement those changes that will help position the Company for the long-term. While we are pleased with the financial savings associated with the consolidation and we are closely managing expenses in this difficult environment, this reorganization was a result of our efforts to enhance our business operations and not simply an effort to cut costs. We will continue our focus on each of our two core brands and we believe this new field leadership structure will result in improved operational practices and execution at both our C.J. Banks and Christopher & Banks stores. As we move into fiscal 2010, the Company's leadership team continues to focus on our cost structure and our strategic plans for the future. In the short-term, we will continue to carefully manage our expenses and inventories, and make selective capital expenditures, with the goal of preserving cash and maintaining our strong balance sheet."
About Christopher & Banks Corporation
Christopher & Banks Corporation is a Minneapolis-based specialty retailer of women's clothing. As of February 2, 2009, the Company operates 816 stores in 46 states, consisting of 548 Christopher & Banks stores and 268 stores in their plus size clothing division, CJ Banks. The Company also operates the www.ChristopherandBanks.com and www.CJBanks.com e-commerce websites.
Forward-Looking Statements
Certain statements in this press release are forward-looking statements, made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements may use the words "expect", "anticipate", "plan" or " plans to", "intend" or "intends", "project", "believe" and similar expressions and include statements regarding: (i) the anticipated savings of approximately $2.0 million in fiscal 2010 as a result of the reorganization and consolidation; (ii) the approximately $400,000 in charges anticipated in the fourth quarter of fiscal 2009 related to the reorganization; (iii) the anticipated increase in efficiencies, cost savings, reduced levels of travel and reduction in travel expenses of $1.0 million annually; (iv) the increased ability of district managers to spend more time with their store management team to create a sharpened focus on delivering a consistent message to the stores and better on-message branding execution ; (v) that this new field leadership structure will result in improved operational practices and execution at both our C.J. Banks and Christopher & Banks stores; and (vi) that in fiscal 2010, the Company's leadership team will continue to focus on the Company's cost structure and its strategic plans for the future and will continue to carefully manage expenses and inventories, and make selective capital expenditures, with the goal of preserving cash and maintaining the Company's strong balance sheet. These statements are based on management's current expectations and are subject to a number of uncertainties and risks, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause our actual results to differ materially from those expressed or implied by the forward-looking statements. Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include, but are not limited to: (i) seasonal fluctuations in our business; (ii) the inherent difficulty in forecasting consumer buying and retail traffic patterns which may be affected by factors beyond our control; (iii) competitive influences, including promotional and pricing competition and the lack of acceptance of the Company's merchandise offerings; (iv) the ability of the Company's infrastructure and systems, including the Company's information technology to adequately support our operations; (v) the effectiveness of the Company's brand awareness and marketing programs and the ability to maintain the value of its brands; (vi) the failure to successfully implement the Company's strategic plans; (vii) weak general economic conditions, tight availability of consumer credit, low consumer confidence and reduced spending patterns could lead to a further reduction in store traffic and in consumer spending on women's apparel; (viii) fluctuations in the levels of the Company's sales, expenses or earnings; (ix) our dependence on mall traffic for sales; and (x) other risks and uncertainties described in our documents filed with the SEC, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. You are urged to carefully consider all such factors.
Readers are cautioned not to place undue reliance on these forward-looking statements which are based on current expectations and speak only as of the date of this release. The Company does not assume or undertake any obligation to update or revise any forward-looking statement at any time for any reason.