New York & Company Inc, a specialty apparel chain announced that following a thorough review of strategic alternatives for its JasmineSola store concept, the Company has decided to exit the 23 store JasmineSola chain by the end of the fourth quarter of fiscal 2007.
This decision enables the Company to focus future investments on higher return opportunities within its New York & Company brand.
Richard P. Crystal, New York & Company's Chairman and CEO, stated: "We believe that we can generate greater shareholder value by directing our resources and capital towards growth initiatives within our core New York & Company brand and therefore have made the difficult decision to exit the JasmineSola business."
In connection with today's announcement, the Company currently expects to incur after tax charges to exit the JasmineSola business of approximately $28.0 to $30.0 million over the third and fourth quarters of fiscal 2007. The majority of these charges are expected to be non-cash impairments of intangible assets and store level property and equipment.
The Company is exploring opportunities to convert existing JasmineSola locations to its New York & Company concept and to redeploy JasmineSola associates to positions in New York & Company, where feasible.
This decision enables the Company to focus future investments on higher return opportunities within its New York & Company brand.
Richard P. Crystal, New York & Company's Chairman and CEO, stated: "We believe that we can generate greater shareholder value by directing our resources and capital towards growth initiatives within our core New York & Company brand and therefore have made the difficult decision to exit the JasmineSola business."
In connection with today's announcement, the Company currently expects to incur after tax charges to exit the JasmineSola business of approximately $28.0 to $30.0 million over the third and fourth quarters of fiscal 2007. The majority of these charges are expected to be non-cash impairments of intangible assets and store level property and equipment.
The Company is exploring opportunities to convert existing JasmineSola locations to its New York & Company concept and to redeploy JasmineSola associates to positions in New York & Company, where feasible.
