Christopher & Banks clinched an agreement with a private, unaffiliated investor group to sell and lease back its Plymouth, Minnesota corporate headquarters. The deal is worth $13.65 million. The company estimates the net expense impact in the first year of the lease to be approximately $300,000, including rent expense, net of depreciation expense and the amortised gain on the sale. The company has been struggling in recent years with declining foot falls and increased competition from both online and off-price retailers. While its same-store sales increased by 5.7 per cent in Q4, the company posted a net loss of $8.8 million for the period.
The company, which operates 462 stores in 45 states, is adding strategic initiatives across merchandising, marketing, e-commerce, and store operations, to stabilise the business and move toward more consistent financial performance.
