Charming Shoppes Inc. filed a lawsuit against two hedge funds on Friday, alleging they are trying to elect three directors to the retailer's board and influence decisions in the funds' favor.
Charming Shoppes filed the lawsuit in a Pennsylvania federal court against Crescendo Partners, Myca Partners and their principals for violating securities laws, according to legal documents. The lawsuit named as defendants Arnaud Ajdler, Eric Rosenfeld, Robert Frankfurt and the two hedge funds, operating jointly as The Charming Shoppes Full Value Committee.
Charming Shoppes alleged that the hedge funds sought to elect Ajdler, Frankfurt and Michael Appel to its board to force the company to make decisions that would benefit them financially, such as selling off assets or buying the defendants' shares back.
"The committee is committed to standing up for and protecting the rights of all shareholders, and this lawsuit will in no way deter us and the other shareholders from expressing our views in a democratic process. We only wish the board and management of Charming Shoppes would focus their energy and resources on improving the business rather than spending shareholders' money on this frivolous lawsuit. We urge all shareholders to ask themselves whose interests Ms. [Dorrit] Bern [chairman, chief executive officer and president of Charming Shoppes] and the company are really trying to protect," said Eric Rosenfeld, president and ceo of Crescendo Partners, on behalf of the defendants named in the lawsuit.
The lawsuit asked the court to bar the defendants from electing board members or taking other steps to further their alleged "scheme," and to order them to sell off their shares of Charming Shoppes stock.
The lawsuit follows previously released statements from Charming Shoppes about Crescendo Group's actions regarding the retailer's board. In mid-January the company commented on notice it received from Crescendo that it intended to nominate the three individuals. At the time, the retailer said it would not be "distracted by the threat of a proxy contest from a dissident shareholder group."
The Charming Shoppes Full Value Committee subsequently filed a presentation with the Securities and Exchange Commission on Feb. 28 regarding the election of the three board members. At the time, the committee said its presentation outlined Charming Shoppes' "history of significant financial underperformance [and noted] that significant operational and governance problems exist at the company that continue to impair stockholder value."
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews