Citi Trends to cut jobs; slows new store opening plans

24 Sep '11

2 min read

Citi Trends Inc. announced the elimination of 40 positions in its corporate offices, distribution centers and store organization. The Company also announced that it would pull back on its new store opening plans, only opening stores for which it has already made commitments. This will result in approximately 55 new store additions for 2011 and approximately five for 2012.

David Alexander, President and Chief Executive Officer of Citi Trends, stated, “The decision to downsize was a very difficult one. The individuals who are being affected have made valuable contributions to our company and they will be missed. We appreciate what each one of them has done for Citi Trends and wish them the very best in the future.

Over the past few months we have undertaken many important initiatives to turn around our business. We believe the two steps taken today help ensure our success through a very challenging economy. Despite the difficult environment in which we are currently operating, we continue to be very optimistic about the Company's future. We have a great niche, a great customer relationship and a very strong balance sheet with approximately $70 million of cash and investments and no debt.”

The Company expects the staff reductions to result in approximately $3.5 million in annualized savings, while incurring an approximate $800,000 severance charge in the third quarter of fiscal 2011.

Citi Trends, Inc. is a value-priced retailer of urban fashion apparel and accessories for the entire family.

Citi Trends Inc

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