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Alliance Data Systems Corp. has acquired Charming Shoppes Inc.'s credit card receivables in an agreement completed today, according to Bensalem, Pa.-based Charming Shoppes. The companies also entered into a 10-year operating agreement in which Alliance Data will operate the retailer's private-label card programs. Charming Shoppes received roughly $136 million for the sale of its private-label credit card portfolio. Alliance Data assumes the operation of Charming Shoppes' private-label card programs for its Lane Bryant, Fashion Bug and Catherines brands. Alliance Data will provide such services as account acquisition and activation, card authorization, card issuance, statement generation, remittance processing, customer service, marketing, and receivables funding. Alliance Data also will maintain and operate Charming Shoppes' existing Milford, Ohio-based customer-service and collection facility. The transaction benefits Charming Shoppes "by enabling us to further focus on our core business" and "by removing the financing risk associated with both the credit card receivable securitization program and the underlying credit card portfolio," Jim Fogarty, Charming Shoppes president and CEO, said in a statement. Charming Shoppes has 4.5 million active private-label credit card customers, according to the retailer. Neither company returned requests for comment by CardLine deadline.
