Program to Help Catalog and Web Retailers Improve Incremental Sales and Customer Loyalty
DALLAS, Aug. 27 /PRNewswire-FirstCall/ -- Alliance Data Systems
Corporation (NYSE: ADS), a leading provider of loyalty and marketing solutions
derived from transaction-rich data, today announced it has signed a new long-
term agreement with Orchard Brands, a portfolio company of Golden Gate
Capital, to provide fully integrated private label credit services for
specialty catalog brands, Old Pueblo Traders, Bedford Fair, Willow Ridge, Lew
Magram, Brownstone Studio, Intimate Appeal, Monterey Bay Clothing Company and
Coward Shoes. According to public documents filed by Charming Shoppes, the
women's apparel specialty catalogs generated approximately $280 million in
sales in 2007.
Orchard Brands, a leading, multi-channel marketer of apparel and home
products with more than $1 billion in revenues, focuses on the rapidly growing
segment of women and men over fifty-five. Orchard Brands also owns Blair
Corporation, a top-ten private label credit program client of Alliance Data.
Under terms of the agreement, Alliance Data will provide a full suite of
integrated credit services for both the catalog and online channels, including
account acquisition and activation, receivables funding, card authorization,
card issuance, statement generation, marketing services, remittance
processing, and customer service functions.
Today's announcement is in conjunction with an earlier announcement made
Monday August 25, 2008 by Charming Shoppes that they had entered an agreement
for the sale of these specialty catalogs to Orchard Brands and an agreement
for the sale of certain related credit card receivables to Alliance Data.
Under the agreement with Charming Shoppes, Alliance Data will purchase the
private label portfolio at par for approximately $40 million. The transaction
is expected to close before January 31, 2009.
'Alliance Data's retail experience, multi-channel expertise and integrated
private label programs will help grow our newly acquired specialty catalog
brands,' said Neale Attenborough, chairman and chief executive officer of
Orchard Brands, 'Our commitment to delivering superior service to the fast-
growing segment of customers fifty-five and over, combined with Alliance
Data's ability to enhance customer loyalty through their private label credit
card programs makes for an exciting partnership.'
'We are very proud to further expand our partnership with Orchard Brands
to include their newly acquired brands Old Pueblo Traders, Bedford Fair,
Willow Ridge and the other great catalogs,' said Ivan Szeftel, president of
Alliance Data's Retail Services. 'Orchard Brands' commitment to delivering
the best quality and outstanding customer service to a rapidly growing
customer segment is unequalled. We look forward to helping facilitate Orchard
Brands' continued success as a leading multi-channel marketer of quality
apparel and home products.'
About Orchard Brands
A portfolio company of Golden Gate Capital, Orchard Brands is a leading
multi-channel marketer of apparel and home products focused on serving the
needs of the rapidly growing market segment of women and men above the age of
fifty-five. With more than $1 million of revenues, Orchard Brands provides
quality products to consumers through the direct channels of catalog, Internet
and retail, with a relentless focus on delivering superior service. Orchard
Brands consists of the brands Appleseed's, Blair, Draper's & Damon's, Gold
Violin, Haband, Norm Thompson, Sahalie, Solutions, Tog Shop and WinterSilks.
About Charming Shoppes, Inc.
At August 2, 2008, Charming Shoppes, Inc. operated 2,359 retail stores in
48 states under the names LANE BRYANT(R), FASHION BUG(R), FASHION BUG PLUS(R),
CATHERINES PLUS SIZES(R), LANE BRYANT OUTLET(R) and PETITE SOPHISTICATE
OUTLET(R). Additionally, the Company operates the following direct-to-
consumer titles: Lane Bryant Woman (TM), Figi's(R), and shoetrader.com.
About Alliance Data
Alliance Data (NYSE: ADS) is a leading provider of loyalty and marketing
solutions derived from transaction-rich data. The Company manages more than
107 million consumer relationships for some of North America's most
recognizable companies. Through the creation and deployment of customized
solutions that change consumer behavior, Alliance Data enables its clients to
create and enhance customer loyalty to build stronger, mutually beneficial
relationships with their customers. Headquartered in Dallas, Alliance Data
employs approximately 7,000 associates at more than 50 locations worldwide.
Alliance Data's brands include AIR MILES(R), North America's premier coalition
loyalty program, and Epsilon(R), a leading provider of multi-channel, data-
driven technologies and marketing services. For more information about the
company, visit its web site, www.AllianceData.com.
Alliance Data's Safe Harbor Statement/Forward Looking Statements
This release may contain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Such statements may use words
such as 'anticipate,' 'believe,' 'estimate,' 'expect,' 'intend,' 'predict,'
'project' and similar expressions as they relate to us or our management.
When we make forward-looking statements, we are basing them on our
management's beliefs and assumptions, using information currently available to
us. Although we believe that the expectations reflected in the
forward-looking statements are reasonable, these forward-looking statements
are subject to risks, uncertainties and assumptions, including those discussed
in our filings with the Securities and Exchange Commission.
If one or more of these or other risks or uncertainties materialize, or if
our underlying assumptions prove to be incorrect, actual results may vary
materially from what we projected. Any forward-looking statements contained
in this presentation reflect our current views with respect to future events
and are subject to these and other risks, uncertainties and assumptions
relating to our operations, results of operations, growth strategy and
liquidity. These risks, uncertainties and assumptions include those made with
respect to and any developments related to the termination of the proposed
merger with an affiliate of The Blackstone Group, including risks and
uncertainties arising from actions that the parties to the merger agreement or
third parties may take in connection therewith. We have no intention, and
disclaim any obligation, to update or revise any forward-looking statements,
whether as a result of new information, future results or otherwise.
'Safe Harbor' Statement under the Private Securities Litigation Reform Act
of 1995: Statements in this presentation regarding Alliance Data Systems
Corporation's business which are not historical facts are 'forward-looking
statements' that involve risks and uncertainties. For a discussion of such
risks and uncertainties, which could cause actual results to differ from those
contained in the forward-looking statements, see 'Risk Factors' in the
Company's Annual Report on Form 10-K for the most recently ended fiscal year.
Risk factors may be updated in Item 1A in each of the Company's Quarterly
Reports on Form 10-Q for each quarterly period subsequent to the Company's
most recent Form 10-K.
SOURCE Alliance Data Systems Corporation
