Charming Charlie's new Back-to-Basics strategy calls for the closing of a number of underperforming stores in the United States. The retailer will also close its Los Angeles office and reduce headcount in its Houston corporate support center and distribution center. These changes will allow Charming Charlie to simplify its business operations, improve liquidity and focus efforts on the core strengths that make the company successful.
"By reducing the size and scale of our operations, we have the opportunity to stabilize the business. We also will be better equipped to read and react to trends and what our customers want, which had been the hallmark of our success. It's what we are referring to as our Back-to-Basics Strategy," said Lana Krauter, who recently was named Interim CEO of Charming Charlie. "This was a challenging decision to make, but we know that it is in the best interest of Charming Charlie, our customers, our vendors and our employees moving forward."
Krauter added, "In addition to the actions we are taking to strengthen our operations and financial performance, we are working closely with our outside advisors to explore a range of alternatives to help ensure the company has adequate sources of financing and the right capital structure to support the business on an ongoing basis. We are confident that with the right business plan and the continued support of our stakeholders, employees and customers, Charming Charlie will be well positioned for the future."