Home / Knowledge / News / Apparel/Garments / Christopher & Banks plans to close Acorn division

Christopher & Banks plans to close Acorn division

Aug '08
Christopher & Banks Corporation announced that, after an internal review, it plans to exit its Acorn division business by December 31, 2008.

A recent evaluation of the Company's Acorn division concluded that the concept has not demonstrated the potential to deliver an acceptable long-term return on the Company's investment. As a result, on July 30, 2008, the Board of Directors authorized plans to close the division's 36 Acorn stores.

Going forward, the Company's focus will be on its two core brands, Christopher & Banks and C.J. Banks, as well as on supporting other growth initiatives that it believes have a greater potential of creating shareholder value.

Lorna Nagler, Chief Executive Officer, commented, “We conducted an extensive review of our Acorn division with the objective of analyzing its viability and future profitability.

With only 36 stores and an operating loss in fiscal 2008 of more than $4 million, including store and corporate administrative expenses, and a charge of more than $10 million for long-lived asset and goodwill impairment, our Board and senior management concluded that further investment would not be in the best interests of the Company and its shareholders.”

“Store locations, brand identity, store economics and the current retail and economic environment were factors that contributed to the less than satisfactory performance of the division. Exiting this concept now allows us to focus our efforts on our two core brands and other strategic initiatives.

We made what is a difficult, but nonetheless what we believe to be the right, decision. However, I want to thank the talented Acorn division team for their hard work and efforts over the past several years.”

The Company will close 36 Acorn stores in 14 states. The closures will impact approximately 80 full-time and 200 part-time positions, or approximately 4 percent of the Company's total workforce.

The Company anticipates pre-tax expenses associated with the closing of the stores to range from approximately $7 million to $10 million. On an after-tax basis, the charges are expected to range from approximately $4.2 million to $6.0 million, or $0.12 to $0.17 per diluted share, with charges to be taken in the second, third and fourth quarters of fiscal 2009.

The expenses primarily consist of charges attributable to estimated lease termination liabilities, non-cash asset impairment charges, and severance and retention costs associated with the closing of the Acorn division.

Christopher & Banks Corporation

Must ReadView All


Textiles | On 28th Oct 2021

UK economy not hit as hard by COVID as expected: Chancellor Sunak

Painting a positive picture of the health of the UK economy as it...

Pic: Shutterstock

Textiles | On 28th Oct 2021

Bangladesh Cotton Association concerned over shortage, rising prices

Expressing concern over the uncertainty regarding the availability of ...

Pic: Pixabay

Textiles | On 28th Oct 2021

China Cotton Index to move down considerably by end of 2021

China Cotton Index (CCI) is expected to move down as Chinese monetary ...

Interviews View All

Textile Industry, Head Honchos

Textile Industry
Head Honchos

Increase foreign exchange and create jobs

Textile Industry, Head honchos

Textile Industry
Head honchos

Instagram & fashion will go a long way together

Vandana Narang, National Institute of Fashion Technology

Vandana Narang
National Institute of Fashion Technology

Campus placements are low due to lockdowns

Kishina Daruka and Mishika Daruka,

Kishina Daruka and Mishika Daruka

Headquartered in Kolkata, India, sustainable clothing brand Ora was...

Barry Goodwin,

Barry Goodwin

UK based Amba Projex Ltd designs, manufactures, and installs industrial...

Alberto Gotti,

Alberto Gotti

Danitech was born from the will of a group of technicians to offer the...

Michaela Griggs & Peggy Schulz, Barco Uniforms

Michaela Griggs & Peggy Schulz
Barco Uniforms

Founded in 1929, Barco Uniforms started as an apparel company for beauty...

Dr Anup Rakshit, ITTA

Dr Anup Rakshit

The Indian Technical Textile Association (ITTA) is the only association of ...

Seth Casden, Hologenix

Seth Casden

Hologenix is a material sciences company dedicated to developing products...

Shalini Sharma & Shweta Pundir Sharma, Six Yard Story

Shalini Sharma & Shweta Pundir Sharma
Six Yard Story

Six Yard Story is a premium artisanal brand with a focus to bring handloom ...

Raghavendra Rathore, Label Raghavendra Rathore Jodhpur

Raghavendra Rathore
Label Raghavendra Rathore Jodhpur

Being one of the first designers to use the "Brand India" positioning for...

Megha Kumari & Jigar Mali, Label Megha & Jigar

Megha Kumari & Jigar Mali
Label Megha & Jigar

New Delhi based label Megha & Jigar blends India's unique handcrafts...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

October 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search