Jim Fogarty, President and Chief Executive Officer of Charming Shoppes, Inc. commented, "We are pleased to have proactively and successfully addressed the maturity of our revolving credit facility. Maintaining strong liquidity -- our revolver availability and our cash position -- is a critical priority for us, and even more critical in today's funding environment. This financing and our strong liquidity allow us to continue our work focusing on our customer and improving our business."

The amount of credit that is available from time to time under the agreement is determined as a percentage of the value of eligible inventory, accounts receivable and cash, as reduced by certain reserves. In addition, the new agreement includes an option whereby the Company may increase its maximum credit up to $300 million, based on certain terms and conditions. The credit facility may be used for general corporate purposes, and provides that up to $100 million of the $225 million may be used for letters of credit.

Borrowings under the new agreement will generally accrue interest at a margin ranging from 3.75% to 4.25% over the London Interbank Offered Rate ("LIBOR"). As long as the excess availability under the new facility is at least $40 million, the Company will not be subject to financial covenants under the terms of the agreement. The Company does not currently anticipate borrowing under the facility; however, were it to borrow at the present time, it is expected that borrowings would be at the lowest end of the margin range over LIBOR.

Eric M. Specter, Executive Vice President and Chief Financial Officer of Charming Shoppes, Inc. commented, "Over the last year, we have actively sought to simplify our business through the divestiture of our non-core misses apparel catalogs and the closure of figure Magazine, shoetrader.com and the Lane Bryant Woman catalog. Given these activities, we have reduced the size of our new revolving credit facility to one that is appropriate to our current business model, and we are very pleased to continue our banking relationships with Wells Fargo, Bank of America Merrill Lynch, and each of the other banks in this transaction."

At May 2, 2009, Charming Shoppes, Inc. operated 2,272 retail stores in 48 states under the names LANE BRYANT(R), LANE BRYANT OUTLET(R), FASHION BUG(R), FASHION BUG PLUS(R), CATHERINES PLUS SIZES(R), and PETITE SOPHISTICATE OUTLET(R). Please visit www.charmingshoppes.com for additional information about Charming Shoppes, Inc.

Safe Harbor Statement

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning the Company's operations, performance, and financial condition. Such forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those indicated. Such risks and uncertainties may include, but are not limited to: the failure to continue receiving financing at an affordable cost through the availability of our credit card securitization facilities and through the availability of credit we receive from our bankers, suppliers and their agents, the failure to consummate our identified strategic alternatives for our non-core assets, the failure to effectively implement our planned consolidation, cost and capital budget reduction plans and store closing plans, the failure to implement the Company's business plan for increased profitability and growth in the Company's retail stores and direct-to-consumer segments, the failure to effectively implement the Company's plans for a new organizational structure and enhancements in the Company's merchandise and marketing, the failure to effectively implement the Company's plans for the transformation of its brands to a vertical specialty store model, the failure to achieve increased profitability through the adoption by the Company's brands of a vertical specialty store model, the failure to achieve improvement in the Company's competitive position, changes in or miscalculation of fashion trends, extreme or unseasonable weather conditions, economic downturns, escalation of energy costs, a weakness in overall consumer demand, the failure to find suitable store locations, increases in wage rates, the ability to hire and train associates, trade and security restrictions and political or financial instability in countries where goods are manufactured, the interruption of merchandise flow from the Company's centralized distribution facilities, competitive pressures, and the adverse effects of natural disasters, war, acts of terrorism or threats of either, or other armed conflict, on the United States and international economies. These, and other risks and uncertainties, are detailed in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2009, Quarterly Reports on Form 10-Q and other Company filings with the Securities and Exchange Commission. Charming Shoppes assumes no duty to update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

SOURCE Charming Shoppes, Inc.

http://www.charmingshoppes.com