Alliance Data signs new long-term agreement with Orchard Brands

Aug 28, 2008 (Datamonitor via COMTEX) -- ADS | Quote | Chart | News | PowerRating -- Alliance Data Systems has signed a new long-term agreement with Orchard Brands, a multichannel marketer of apparel and home products and 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.

Under the 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.

The current announcement is in conjunction with an earlier announcement made by Charming Shoppes that they had entered into 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.

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