James P. Fogarty leaves helm of Charming Shoppes

James P. Fogarty, the turnaround professional who became chief executive officer of plus-size apparel retailer Charming Shoppes Inc. after a proxy fight ousted his predecessor, resigned Wednesday after 18 months on the job.

Fogarty's unexpected departure as head of the Bensalem company that owns Lane Bryant, Fashion Bug, and other stores came ahead of the all-important holiday shopping season and was the latest sign of difficulties at the struggling corporation. He also resigned from the board of directors.

In a news release, board chairman Michael Goldstein thanked Fogarty, who had helped stabilize the publicly traded company's finances since being hired in April 2009. Goldstein said Fogarty's eventual replacement would have "significant retail experience."

"Under his leadership, we have made substantial progress in the financial and operational phase of our restructuring," Goldstein said.

Fogarty's duties were temporarily given to executive vice president Anthony M. Romano, who was promoted to chief operating officer from his prior post as head of global sourcing and transformation. Executive search firm Spencer Stuart was hired to lead the hunt for a new CEO.

Fogarty, reached by phone after the company's 4 p.m. announcement, declined to comment.

Asked whether Fogarty had been fired, Dawn Dover, a spokeswoman for the company, said: "He left to pursue other interests."

In an interview several months after his arrival last year, Fogarty said he looked forward to a long-term stint at Charming Shoppes. He joined the firm after a career at Alvarez & Marsal, a top turnaround firm, where he had been managing director.

He succeeded former longtime Charming Shoppes CEO Dorrit J. Bern, who was unseated in mid-2008 after activist investors prevailed in a proxy fight for control of the company.

Fogarty had worked on the Lehman Bros. Holdings Inc. bankruptcy but had prior retail experience, too: He helped restructure Levi Strauss & Co., and the Warnaco Group.

When he took the helm of Charming Shoppes, Fogarty began a cost-cutting campaign that included store closings, asset sales, and debt reduction to offset double-digit sales declines.

But Charming's largely value-oriented customers were hit hard by the economy. And even after Fogarty made changes, sales struggled to grow, with the company's stock price hovering mostly at $3 to $4 in recent months. The stock closed at $4.35 Wednesday.

A merchandise misfire was the subject of considerable discussion during the company's second-quarter earnings call in September. It led to a glut of inventory and price markdowns, hurting profits.

As a replacement for Fogarty on the board of directors, the company appointed Michael Blitzer, of corporate advisory firm Portsmouth Partners L.L.C.