Charlotte Russe Holding Board of Directors Faces Shareholder Investigation

If you are currently an investor in shares of Charlotte Russe Holding (Public, NASDAQ:CHIC), and purchased the shares before August 24, 2009, you have certain options and you should contact the Shareholders Foundation.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Charlotte Russe Holding
Affected Securities: 
NASDAQ: CHIC

An investigation on behalf of current investors Charlotte Russe Holding (Public, NASDAQ:CHIC), who purchased the shares before August 24, 2009, over potential breaches of fiduciary duty and other violations of state law in connection with an alleged unfair takeover price was announced.

The investigations by law firms focus on potential breaches of fiduciary duty and other violations of state law by the Board of Directors of Charlotte Russe Holding (Public, NASDAQ:CHIC) arising out of their attempt to sell Charlotte Russe to Advent International Corp. Charlotte Russe Holding, Inc. (NASDAQ: CHIC) announced on August 24, 2009, that it has entered into a definitive agreement to be acquired and taken private by investment funds managed by Advent International Corporation. According to Charlotte Russe under the terms of the merger agreement, an affiliate of Advent International Corp will commence a tender offer to purchase for cash all of the outstanding shares of Charlotte Russe common stock (NASDAQ: CHIC), and the associated preferred stock purchase rights, at a price of $17.50 per share, for a total value of approximately $380 million. But according to an investigation by a law firm “the transaction appears to be unfair” to current investors of Charlotte Russe Holding (Public, NASDAQ:CHIC).

According to another investigation the investigation “concerns whether the Charlotte Russe Board of Directors breached their fiduciary duties to Charlotte Russe shareholders given that the Company has posted better-than-expected earnings in the past couple of quarters and that the purchase price is only 4.5 times EBITDA, which one analyst called "a pretty good discount" for an acquisition of a specialty retailer”. Charlotte Russe Holdings, Inc., located in San Diego, California, incorporated in July 1996, is a mall-based specialty retailer of fashionable, value-priced apparel and accessories. Charlotte Russe Holdings distributes and sells apparel and accessories to young women in their teens and twenties. Charlotte Russe Holdings reported in 2007 (ending on September 2007) Total Revenue of $740.94million with a Net Income of $36.30million and in 2008 (ending on September 2008) Total Revenue of $823/25million with a Net Income of $18.17million. Charlotte Russe Holdings shares (NASDAQ: CHIC) traded at $1736 per share after the announcement and the day before the announcement at $ 13.80 per share, down from almost $20 per share in 2008 and over $30 per share in 2007.