Charlotte Russe Holding Corp. has rejected the bid submitted last week by KarpReilly Capital Partners and H.I.G. Capital to acquire the specialty retailer and take it private for between $9 and $9.50 a share. In a letter released by the firm, Jennifer Salopek, chairman, wrote to KarpReilly’s Alan Karp and H.I.G.’s Timothy Armstrong that the offer “is definitively not in the best interest of Charlotte Russe’s shareholders,” and that actions taken by the company, including the appointment of new management on Nov. 12, the day the bid was received, had established “the necessary foundation for a new start in 2009.” Salopek continued, “Your opportunistic proposal — coming as it does in the early stages of this board-initiated transformation, and amidst unprecedented general macroeconomic turmoil — attempts to take advantage of current market conditions and would undermine the long-term shareholder value that this board and management team is committed to building. We firmly believe that executing on our plan is the best and right course for our shareholders.”

This story first appeared in the November 20, 2008 issue of WWD. Subscribe Today.

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