Minnesota Retailer Brings in New Talent to Right the Ship

Christopher and Banks Corporation CBK (NYSE), a moderately priced private label women's apparel retailer, following a year of a declining stock price and weak earnings announced the resignation of CEO Matthew Dillon. At the same time, the company announced his replacement, Lorna Nagler. Nagler, until late June of this year, was president of women's plus-size apparel retailer Lane Bryant. Nagler was also previously president of Catherine Stores, a division of Charming Shoppes and prior to that was senior vice president and general manager for apparel and jewelry at K Mart. In addition to the recent CEO change there have also been other negative indicators regarding the company. The CFO of Christopher & Banks, according to an SEC filing, recently sold $668,400 in stock or 40,000 shares at an average price of $16.71. Moller's transaction was the first insider transaction at the firm since he sold $434,000 worth of shares back in January, at an average price $20.60. The above facts indicate that Nagler is faced with a terrific challenge. The CFO does not appear to place great confidence in the company's performance.

At the time of the latest announcement the company's chairman, Larry Barenbaum, said,

"We are excited to welcome Lorna Nagler as CEO of Christopher and Banks. Her experience in the women's specialty retailing industry and talent as a leader capable of building effective teams make her an outstanding choice to lead our Company as CEO. The Board of Directors shares my confidence in Lorna's ability to lead Christopher & Banks in today's retailing environment."

Nagler will have a chance to work with a former associate at Lane Bryant. Back in June, Christopher and Banks hired Susan Connell as executive vice president and chief merchandise officer. Connell was hired to oversee sourcing, product development and other merchandising concepts for the company. Prior to being hired at Christopher and Banks, Connell was the senior vice president and general merchandising manager at Lane Bryant the same company Nagel came from. Hopefully, the two executives will be able to develop the right formula to turn the company around.

Keep a close eye on Nagel to see what she plans to do with the company. She has a difficult challenge ahead of her.