Charming Shoppes Inc., owner of the Lane Bryant clothing chain, surged on a report that Ascena Retail Group Inc. will acquire it for $890 million.
The shares of Charming Shoppes, based in Bensalem, Pennsylvania, jumped 20 percent to $7.10 at 7:02 p.m. in New York. Ascena, based in Suffern, New York, rose 10 percent to $21.
Ascena, owner of the Dressbarn clothing chain, will pay $7.35 a share for Charming Shoppes, the Wall Street Journal reported, citing people familiar with the deal. The deal may be announced tomorrow, the paper said. Representatives from both companies didn’t return calls or e-mails seeking comment.
Charming Shoppes hired Barclays Capital as a financial adviser in December to conduct a financial review of the company after more than four years of declining sales.