Christopher & Banks Corporation Announces Cost Saving Plan and Workforce Reduction

MINNEAPOLIS--Christopher & Banks Corporation (NYSE: CBK) today announced that in response to the current economic and business environment it has implemented a cost saving plan for fiscal 2010 which includes a workforce reduction effective immediately.

The Company has, or is in the process of implementing, a number of selling, general and administrative cost reduction measures which are anticipated to result in more than $15 million of savings in fiscal 2010, which commences March 1, as compared to fiscal 2009. These cost saving initiatives include considerable year-over-year reductions in store payroll costs, professional services, independent contractors and travel. Also as part of the plan, there will be no merit salary increases and the Company is suspending its discretionary match contributions to the 401(k) plan.

The workforce reduction will impact twenty-four employees representing approximately 11% of the corporate headquarters employees. The Company will offer assistance to employees affected by the workforce reduction in the form of severance and outplacement services. As a result of the workforce reduction, the Company expects to record a charge of approximately $325,000 in the fourth quarter of fiscal 2009. The Company also believes that the annualized benefit resulting from the workforce reduction will greatly exceed this charge.

Lorna Nagler, President and Chief Executive Officer, said, “We have taken a number of actions to adjust our cost structure in order to strengthen our position in the current economic environment. This resulted in some difficult decisions with respect to reducing our current workforce. These actions will enable us to streamline our operating structure while also enabling us to emerge from this difficult period positioned for growth and improved earnings. As we move into fiscal 2010, we will continue to very carefully manage expenses and inventories, as well as preserve our cash.”

About Christopher & Banks Corporation

Christopher & Banks Corporation is a Minneapolis-based specialty retailer of women’s clothing. As of February 23, 2009, the Company operates 815 stores in 46 states, consisting of 548 Christopher & Banks stores and 267 stores in their plus size clothing division, CJ Banks. The Company also operates the www.ChristopherandBanks.com and www.CJBanks.com e-commerce websites.

Keywords: Petites, Women’s Clothing, Plus Size Clothing, Christopher & Banks, CJ Banks.

Forward-Looking Statements

Certain statements in this press release are forward-looking statements, made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements may use the words “expect”, “anticipate”, “plan” or “ plans to”, “intend” or “intends”, “project”, “believe” and similar expressions and include statements regarding: (i) the implementation of a number of S,G&A cost reduction measures which are anticipated to result in S,G&A cost reductions of more than $15 million as compared to fiscal 2009; (ii) that the Company expects to record a charge of approximately $325,000 in the fourth quarter of fiscal 2009 as a result of the workforce reduction and that the annualized benefit resulting from the workforce reduction will greatly exceed the fourth quarter charge; (iii) that the Company’s taken a number of cost reduction actions to adjust its cost structure in order to strengthen its position in the current economic environment; (iv) that the Company’s actions will enable it to streamline its operating structure to emerge from the difficult economic environment positioned for growth and improved earnings; and (v) that the Company as it moves into fiscal 2010 will continue to manage expenses and inventories, as well as preserve cash. These statements are based on management’s current expectations and are subject to a number of uncertainties and risks, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause our actual results to differ materially from those expressed or implied by the forward-looking statements. Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include, but are not limited to: (i) seasonal fluctuations in our business; (ii) the inherent difficulty in forecasting consumer buying and retail traffic patterns which may be affected by factors beyond our control; (iii) competitive influences, including promotional and pricing competition and the lack of acceptance of the Company’s merchandise offerings; (iv) the ability of the Company’s infrastructure and systems, including the Company’s information technology to adequately support our operations; (v) the effectiveness of the Company’s brand awareness and marketing programs and the ability to maintain the value of its brands; (vi) the failure to successfully implement the Company’s strategic plans; (vii) weak general economic conditions, tight availability of consumer credit, low consumer confidence and reduced spending patterns could lead to a further reduction in store traffic and in consumer spending on women’s apparel; (viii) fluctuations in the levels of the Company’s sales, expenses or earnings; (ix) our dependence on mall traffic for sales; and (x) other risks and uncertainties described in our documents filed with the SEC, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. You are urged to carefully consider all such factors.

Readers are cautioned not to place undue reliance on these forward-looking statements which are based on current expectations and speak only as of the date of this release. The Company does not assume or undertake any obligation to update or revise any forward-looking statement at any time for any reason.

Contacts:

Christopher & Banks Corporation
Lorna Nagler, 763-551-5000
President and Chief Executive Officer
or
Investor Relations:
ICR, Inc.
Joe Teklits/Jean Fontana, 203-682-8200