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Christopher & Banks Picks Acorn

MINNEAPOLIS-Christopher & Banks closed this week on its purchase of Acorn, a small chain of relatively upscale women's apparel.

By Dees Stribling | Updated on November 02, 2004

MINNEAPOLIS-Christopher & Banks Corp. (CBK)has completed the acquisition of 21 Acorn stores in nine states, which Bill Prange, chairman and CEO of the retailer called “a differentiated yet complementary third retail concept, which will allow us to reach a more upscale customer demographic” in a statement this week. But is it what CBK needs? Observers of the company disagree on the matter.

The Acorn stores, which Kalamazoo, MI-based Gilmore Brothers Inc. sold to CBK for about $7 million, join the retailer’s two other brands, 463 Christopher & Banks stores, and 150 C.J. Banks stores. Acorn caters primarily to middle-aged women at both mall and non-mall locations, typically offering clothes at higher price points than the other two stores, more directly competing with Talbots or Chico’s.

Regarding the acquisition, Credit Suisse First Boston analysts Richard N. Baum and Tracy Kogan write, “We reiterate our Outperform rating. Serving the attractive mature woman demographic segment largely underserved by specialty stores, Acorn is a good fit for CBK and provides the company with a potential future leg of growth, beyond Christopher & Banks and CJ Banks.”

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