Charming Shoppes expects to receive net cash proceeds of approximately USD 110 million related to the transaction. The transaction consists of the sale of Charming Shoppes private label credit card portfolio, along with other assets and liabilities that are required to support the card programs.
Under the terms of the operating agreement, Alliance Data will assume operation of Charming Shoppes private label credit card programs. This includes the operation of combined programs totalling around 4.5 million active accounts generating approximately USD 680 million of annual credit sales, or 32 percent of the Companys retail stores nets sales for a 12-month interval. Alliance Data will provide private label credit card services such as account acquisition and activation, card authorization, private label credit card issuance, statement generation, remittance processing, customer service functions and marketing services, as well as receivables funding.
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