Charming Shoppes selling catalog unit

Charming Shoppes Inc., the Bensalem clothing retailer, said yesterday that it was selling its misses-catalog-clothing unit and related credit card receivables.

The eight catalogs, known as Crosstown Traders, and associated e-commerce sites will be sold to Orchard Brands for $35 million in cash.

The deal is expected to close by the end of September.

Charming Shoppes also announced yesterday that it was selling its associated misses-apparel-catalog credit card receivables for about $40 million in cash to Alliance Data Systems Corp.

That transaction is expected to close by the end of January.

The company said the two transactions, less securitized indebtedness of about $32 million, will result in pretax net cash proceeds of about $43 million.

The company said it was selling off the noncore business to focus on its key brands - Lane Bryant, Fashion Bug and Catherines - and leverage its position in women's specialty plus apparel.

The company is also exploring the sale of its Figi's Gifts in Good Taste catalog business, based in Wisconsin.

Shares of Charming Shoppes fell 13 cents, or 2.28 percent, to close at $5.58.