PhillyInc

Deb Shops Inc. of Philadelphia has leased 280,000 square feet of warehouse and office space from Blue Grass Partnership, which includes chief executive Marvin Rounick, his brother Jack A. Rounick, the company's secretary and treasurer, plus other executives and their spouses. In June, a year before its expiration, the lease was extended to 2012, according to a filing at the SEC. Deb Shops paid $550,000 for the space in the fiscal year ended Jan. 31, and still must pay $3.6 million. The company called the arrangement "fair, reasonable, and consistent with the terms that would have been available to us if made with unaffiliated parties."

- Jonathan Berr

Tenants of the Cherry Hill Mall had the most sales per square foot of any of the 38 malls owned by the Pennsylvania Real Estate Investment Trust.
In the quarter ended March 31, stores in the mall generated $483 per square foot in average comparable sales, up 4.4 percent from a year earlier, the company said in a filing with the Securities & Exchange Commission. The Philadelphia-based company is planning a $250 million redevelopment of the mall that's expected to be done in 2009. -- Jonathan Berr

Cedar Shopping Centers Inc. plans to develop a $105 million. 700,000 square foot shopping center in Pottsgrove, Pa. through a joint venture, according to a filing with the Securities & Exchange Commission. The Port Washington, New York-based company will provide up to $17.5 million of equity capital for a 60 percent interest in the venture with a preferred rate of return of 9.25 percent. In April, the company acquired five supermarket-anchored shopping centers in Eastern Pennsylvania for $91.9 million. -- Jonathn Berr

Part of Charming Shoppes Inc.'s $8.3 million pay package last year for its chief executive, Dorrit J. Bern, was $38,602 "for our incremental cost of use of the corporate aircraft for commuting purposes," the Bensalem-based retailer said in a filing with the Securities & Exchange Commission. That's not bus tokens. The company also reported that it spent $72,000 for Bern's "rent-free use of an apartment in Philadelphia." The 57-year-old Bern lives in the Chicago area. Charming's director of investor relations, Gayle Coolick, explains that when Bern was recruited in 1995, she "didn't want to relocate because she didn't want to uproot her young children." So Charming Shoppes agreed to the commuting expense because, Coolick said, it "badly" wanted to recruit her. - Jonathan Berr

Turns out Sidney Kimmel doesn't hold a candle to other Jones execs patronizing Barneys, one of the stores it owns. Footnted.org points out that Allen Questrom's discount was just over $35,000 last year. And he's only been on Jones' board for little more than a year. See previous post.

Simon Property Group L.P. says in an SEC filing that its $119 million Philadelphia Premium Outlets by Simon Properties Inc. in Limerick is almost halfway built. The center is set to open during the fourth quarter. Indianapolis-based Simon's holdings include the King of Prussia, Montgomery, Granite Run and Oxford Valley malls. - Jonathan Berr

Wawa Inc.'s former president gets new gig.

Tip from Keystone Politics.

Sure, shareholders in Pathmark Stores Inc. (NASDAQ: PTMK) may do just fine from the company's merger with Great Atlantic & Pacific Tea Co. (NYSE: GAP). But most likely they won't do as well as Pathmark CEO John Standley. According to SEC filings today, Standley is entitled to receive a cash payment of $3.6 million and receive 249,900 shares of restricted stock worth about $3.2 million -- immediately vested. A Pathmark spokesman told PhllyInc that Standley and other top executives have not said yet whether they will stick around following the merger. Top executives often negotiate these "change in control" provisions into their employment contracts. Great Atlantic CEO Eric Claus is heading up the combined company, which still faces the daunting task of competing against bigger chains including Wal-Mart Stores Inc. (NYSE: WMT). Karen Short, an analyst with New York-based Friedman Billings Ramsey & Co., recently told Bloomberg News. "These are two companies that have been struggling. This makes them struggle less. These companies aren't profitable as standalone'' entities. Pathmark is based in Carteret, N.J. and Great Atlantic is based Montvale, N.J. The combined company will have revenue of $11 billion and 550 stores. -- Jonathan Berr

Peter Boneparth's resignation today as CEO of Jones Apparel Group, amid negotiations to sell the Barneys division that he had acquired, has set off a lot of speculation, much of it contradictory, on what all this means. A little roundup:

“Look at the stock price. Peter Boneparth has been under pressure to fix operations and improve the stock price for quite some time.”

- Ted O’Connor, analyst for Cooke & Bieler Inc. in Philadelphia, Jones Apparel Group Inc.’s sixth-largest shareholder.

“Nobody resigns before they see the white of the eyes. They don’t say, “There’s a light down there, I better step aside.”

Holly Guthrie, analyst who covers specialty retail for Janney Montgomery Scott LLC in Philadelphia.

“I think this is a sign that Jones results are further deteriorating.”

Brad Stephens, analyst for Morgan Keegan & Co. Inc. in New York.

“We believe Mr. Boneparth has already done the heavy lifting and laid the groundwork for a smooth transition.”

Jeffrey Edelman, analyst at UBS in a research note Thursday.

“Who knows why Boneparth bought Barneys? That was kind of a puzzling investment.”

Stephen Hoch, director of the J.H. Baker Retailing Initiative at Wharton School.

- Joseph Galante

The Arkansas-based retailing behemoth said yesterday it plans to test-market a new line of “Bible action figures” starting in August for customers who prefer Samson over Spidey. (That's our cutsie line and we're sticking to it. AP picks on the Bratz dolls. USAToday went for the Spiderman contrast, too, and even created a photo slideshow. Who needs an ad budget with all this publicity?). Wal-Mart bloggers on Writing on the Wal ridicules anybody who would pay for a Bible, much less a doll. But MediaPost notes that it's just part of a larger marketing trend.

To us, this actually provides an interesting insight into our own regional market and demographics compared to the rest of the Northeast, courtesy of Wal-Mart's sales and market research department. Spokeswoman Melissa O’Brien told PhillyInc that of the 425 stores in the test-marketing campaign, most are in the South and West, although 25 are scattered around Pennsylvania. (See list below). Interestingly, she confirms that none is farther northeast than a store in Easton, Pa. or one on Roosevelt Boulevard in Philadelphia. That stops short of New Jersey, skips Delaware and goes nowhere near NYC, thus avoiding most of the Northeast, one of the nation’s most populous regions. Sure, Wal-Mart has fewer stores in this region to start with. But still, it does illustrate something about Northeasterners, Pennsylvanians and Jerseyans.

Says O’Brien: “This is an initial test. It doesn’t mean there are more faith-based communities in those areas. But we know that these products sell well in these stores. ... These are stores we selected based on their demographcis to see how they test.”

O'Brien goes on: "A lot of the test-market stores are where we’ve seen patterns of faith-based products selling well. They are concentrated where we have business with churches in the area as well. That’s not to say all (locations) are like that. We have a program called Store of the Community. ... We look at products to see if they are tailored to the commuity. This falls under that program, and this is the first time we are carrying a line of faith-based toys. We have sold them at certain times before, around Easter ... but this is taking those locations and using them as an initial test market."

- Thomas Ginsberg

Courtesy expecting-fitness.com

Ciancolio isn't alone. Lots of people had high hopes of the Philadelphia-based maker of maternity apparel, whose stock more than tripled in 2006. Things are sure different this year. Shares are down more than 37 percent and fell further again yesterday after the company slashed its guidance for adjusted earnings this year to $1.49 to $1.74 from an earlier forecast of $2.32 to $2.85. Analysts had expected earnings of $1.73.

One of the problems Mothers Work is facing is the growing popularity of maternity clothing. "It turns out maternity wear is quite the fashion trend these days, with nonspecialty stores selling items such as trapeze and baby-doll dresses to the nonpregnant, who like the style, and the newly pregnant, who like the garments for early in their pregnancy," Cianciolo wrote.

Mothers Work seems to be taking the negativity in stride. After it reported dismal third-quarter results (earnings of $1 million, or 17 cents per share, down from $8.8 million or $1.54, last year; revenue plunged 6.5 percent to $153.2 million), President and co-founder Rebecca Matthias tried to put a positive spin on the earnings in the company's press release: "We do not believe that the recent weakness in our sales performance is indicative of any impairment of our long-term prospects," she said.

- Jonathan Berr

What we'd like to learn - but probably never will - is how Hogan's celebrity endorsement deal compares to Foreman's, and how QVC got him on board? The affable Foreman, of course, has been doing product endorsements for a long time, with the grill only being the most recent success out of many attempts. (Listen to his interview wiith Motley Fool on an NPR last year, where he relates the history of his grill business.) In contrast QVC appears to be in the driver's seat with Hogan, and its director of home merchandising, Ken O'Brien, clearly sees value in Hogan as an on-air personality to boost the QVC brand: "Hulk's appearance on QVC will allow our viewers to see the other side of the wrestling legend while introducing them to a great new product. It's a win-win situation for everyone."

- Thomas Ginsberg

Seems Reading Terminal Market has inspired folks in Minneapolis to pour millions of dollars into a public market there, called the Midtown Global Market, with mixed results. Dara Moskowitz at the Epicurious' Choptalk Blog notes that its hallways are empty in the afternoon. What did RTM do right? Or wrong, if you ask Rick Olivieri, who is steamed over the eviction of his Rick's Steaks. (See Menupages blog, too.)

Courtesy Bon-Ton Stores

Hot or not, Bon-Ton’s closest locations to Philly are Doylestown and Quakertown. Why is it Missing In Action in Center City? What about the old Strawbridge’s at 8th and Market?

- Jane M. Von Bergen

Courtesy lilliputplayhomes

The company told the SEC yesterday that earlier this year, the first couple of maternity clothing got some very nice benefits from the Philadelphia-based company though SERPs (Supplemental Executive Retirement Plans), whose purpose is "to provide the executives with supplemental pension benefits following their cessation of employment." It said Mothers Work made an initial contribution to a "grantor trust" of $2.66 million on April 30 for the couple. No further contributions will be made during the current fiscal year. If the company changes hands or either executive is terminated without cause, then the benefits will fully vest.

Does this mean a Matthias retirement is in the offing? The company declined our request for comment. The Matthias' SERP was part of a five-year employment agreement that Dan and Rebecca signed in March. At that time the Matthias' company justified the SERPs by saying they were an "essential" incentive to "provide for the continued employment" of the Matthias themselves. Each Matthias gets a base salary of $531,803 plus targeted restricted stock awards of at least 15,000 shares.

SERP agreements are common. That irks corporate governance watchdogs, particularly in companies that aren't doing well. Wall Street analysts expect Mothers Work to post a loss of 20 cents per share in the quarter and project its revenue to decline 3.2 percent, to $138.2 million, according to Thomson Financial. Once a Wall Street favorite, Mothers Work now is in Wall Street's doghouse. Its share price has plummeted more than 50 percent this year.

We called Dan Pedrotty, director of the AFL-CIO's Office of Investment, and described the details of the Matthias' SERP agreements. He said: "We take the view that there should be some justification for them. You are setting up a situation where there isn't a level playing field between the execs and the rest of the employees." (MWRK has about 2,600 employees).

For their part, Rebecca Matthias has acknowledged the company faces "a continued difficult overall economic and retail environment." She holds the title of president and chief creative officer and has blamed the company's woes on changing fashion trends.

- Jonathan Berr

It's not local, but something grabs us about this description of the Chinese toy manufacturer who apparently committed suicide over a recall. Local media portay him as a "caring and upright" guy taken in by his friend and business partner who sold him the toy paint.

Mothers Work Inc. (NASDAQ: MWRK) apparently is attracting investors looking for a bargain.

Stadium Capital Management L.L.C., an Oregon-based hedge fund, yesterday reported that it had acquired a 7.6% interest in the Philadelphia maker of maternity clothing, according to a filing with the Securities & Exchange Commission. Stadium declined to comment on the investment.

Stadium isn't alone. FMR Corp., parent of Fidelity Investments, added to its position in May. Another big investor, Bear Stearns Asset Management, though reduced its stake in the company.

To be sure, Mothers Work is a cheap stock. Its shares have plunged more than 50 percent since the start of the year. Earlier this month, Mothers Work said sales declined more than 10 percent decline in July amid what President and Chief Creative Officer Rebecca Matthias described as a " continued difficult overall economic and retail environment."

Investors who buy these types of stocks pride themselves in finding value in stocks that other investors have given up on.

Maybe they think that the husband and wife management team of Dan and Rebecca Matthias, who have sold more than 231,000 shares earlier this year, will be able to improve their company's performance. Perhaps they figure Mothers Work will make an attractive buyout for either a leveraged buyout company or a larger apparel makers.

Whether their patience will be rewarded probably won't be clear for a few months.

Think of it as a pregnant pause.
- Jonathan Berr

Though cute, Manny Moe & Jack aren't the Pep Boys responsible for today's six percent hike in the share price of Pep Boys -- Manny Moe & Jack (NYSE:PBY). Instead, credit Billy, Jim and Jeff for the sudden stock peppiness of the Philadelphia-based auto parts retailer and repair chain.

Billy is William Leonard, a former Aramark chief executive who joined the board in 2002 and became chairman in 2006. He acquired 20,000 shares on August 23, bringing his total position to 126,699, according to a filing with the Securities and Exchange Commission. He also served as the company's interim chief executive from July 2006 to March 2007. Leonard, a major shareholder, didn't immediately respond to a request for comment left with Pep Boys.

Jim is Barrington Capital Group head James Mitarotonda, who purchased 82,800 shares for about $1.2 million on Aug. 23, bringing his holdings to 4.5 million shares, about 8.8 percent of the outstanding stock, according to another SEC filing. Mitarotonda's complaints lead to the ouster of Chief Executive Lawrence Stevenson last July. A month later, Pep Boys shelved plans to sell itself until its financial performance improved.

Jeff? That would be Jeffrey Rachor, the CEO who started in March. These purchases were interpreted by investors as a vote of confidence Rachor's turnaround strategy which is showing some results. During the last quarter, Pep Boys reported its profit had nearly tripled even as its sales declined.

In an interview, Mitarotonda said he was pleased with Rachor's work.
"I am very confident that he will do a great job for all of the shareholders," he said, adding that Wall Street is "starting to really recognize that there is a turnaround in progress."

The work, though, is far from over.

"What's driving the stock right now in terms of valuation is the cost-cutting and real estate transactions," says Ben Silverman, Insiderscore.com's director of research, told Barron's (subscription required) "Moving forward the company will need to restart revenue growth, which may prove difficult if there is a consumer recession."

- Jonathan Berr

What's the price of a good name?

About 6 and a half cents.

That's the new lower price per name that Mothers Work (NASDAQ:MWRK) is touting to companies that want to use its customer list to send junk mail (or as they put it. "partner messages") to pregnant women and new moms.

In a press release, Mothers Work, the Philadelphia-based designer, manufacturer and retailer of maternity clothes proudly announces a new lower base price of $65 per thousand names on its ‘Families Masterfile’ and ‘Children’s Birthdays’ mailing lists.

Here's how the press release quotes Rebecca Matthias, president of Mothers Work, talking about the list: (For best effect, read out loud breathlessly, but sincerely, trying to avoid an ironic tone for prenatal channels -- is that some kind of reverse delivery?)

“Dressing over 2.8 million pregnant women each year, A Pea in the Pod, Mimi Maternity, Motherhood Maternity and Destination Maternity are the experts when it comes to reaching both the expectant mom and the new mom. Our partners continually find success in acquiring new customers through the premier prenatal and new parent channels. We have an extensive database ideal for direct marketers of all kinds, especially now for those marketing to new parents and families with children who are hungry for information at this critical life-stage!”

The release makes the point that all the people opted in to be on the list, which is being managed by Adrea Rubin Management, Inc. Particularly enticing is the prenatal hotline list (Mothers Work Families Masterfile) monthly of over 100,000 Mothers Work customers that can be sliced and diced by age and income and mail order data - even by Hispanic name.

If the "partners" don't want to send junk mail, they can also talk to MothersWork about its customer gift bag program or gift card, delivered to the 2.8 million "newly forming households" shopping at Mothers Work stores annually.

- Jane M. Von Bergen

What's the price of a good name?

About 6 and a half cents.

That's the new lower price per name that Mothers Work (NASDAQ:MWRK) is touting to companies that want to use its customer list to send junk mail (or as they put it. "partner messages") to pregnant women and new moms.

In a press release, Mothers Work, the Philadelphia-based designer, manufacturer and retailer of maternity clothes proudly announces a new lower base price of $65 per thousand names on its ‘Families Masterfile’ and ‘Children’s Birthdays’ mailing lists.

Here's how the press release quotes Rebecca Matthias, president of Mothers Work, talking about the list: (For best effect, read out loud breathlessly, but sincerely, trying to avoid an ironic tone for prenatal channels -- is that some kind of reverse delivery?)

“Dressing over 2.8 million pregnant women each year, A Pea in the Pod, Mimi Maternity, Motherhood Maternity and Destination Maternity are the experts when it comes to reaching both the expectant mom and the new mom. Our partners continually find success in acquiring new customers through the premier prenatal and new parent channels. We have an extensive database ideal for direct marketers of all kinds, especially now for those marketing to new parents and families with children who are hungry for information at this critical life-stage!”

The release makes the point that all the people opted in to be on the list, which is being managed by Adrea Rubin Management, Inc. Particularly enticing is the prenatal hotline list (Mothers Work Families Masterfile) monthly of over 100,000 Mothers Work customers that can be sliced and diced by age and income and mail order data - even by Hispanic name.

If the "partners" don't want to send junk mail, they can also talk to MothersWork about its customer gift bag program or gift card, delivered to the 2.8 million "newly forming households" shopping at Mothers Work stores annually.

- Jane M. Von Bergen

Not sure what to make of this. But we've now heard of two sightings of Christmas Trees already for sale or display in Philadelphia department stores. ("Now" as in early September, more than three months before Xmas.) Boscov's put up a display of trees for sale a few weeks ago. And today a post at MetroBlogging says Macy's in Center City (the old Lord & Taylor) had the makings of a Christmas Tree display on its main floor. No Xmas decorations or discounts. Just trees. Anybody else seen this?

- Thomas Ginsberg

What better way to publicize a new business than to display a genuine freak of nature? Yesterday, Big Al's Aquarium Supercenter in East Norriton, which just opened this summer, announced the "birth" of a "one-in-a-million" two-headed slider turtle. It invited the public to have a look at what appeared to be rare biological occurrence right here. AP sprang to action and sent photos around the country. NBC10 sent a crew. The press release got our attention at The Inquirer.

OK, forget for the moment that such oddities are not unheard of. Or that David Letterman once had a two-headed turtle on his show. Or that this particular trachemys scripta was actually hatched a month ago in Florida and shipped here to be a store attraction, and was not born last weekend in East Norriton as the P.R. guy initially told us.

In fact, franchise owner Bob Weintraub of Gwynedd Valley says he and partner Joel Goldstein of Lower Gwynedd bought this oddity from a Florida collector because they wanted a "mascot" for their new store. And, of couse, they wanted some publicity, too. They'll get both. The freaky little reptile has no name, yet, and is not for sale. And although it was not hatched here, the publicity plan was. Weintraub used to run a retail fish store in Jenkintown, and Goldstein used to sell aquarium equipment. The friends were retired and looking for something to do when Big Al's, based in Florida, began offering franchises. They got the first one outside Florida. Now they run a store akin to the Home Depot of household fish. Judging by the turtle reaction, they'll do fine.

- Thomas Ginsberg

Anyone who has owned a radio or television in the Philadelphia area in the past 25 years knows Jerry Robbins, or at least thinks they do. His commercials, which feature his velvet baritone honed from years of work on the stage, have transformed him from jeweler to brand icon. But the 70-year-old jeweler is also the chief of Leo Robbins & Sons Inc., the company founded by his father Leo in 1949. (His family has roots in the jewelry business even before that.)

Though semi-retired, he still shows up to work. Now, he's in the process of figuring out how to pass the torch to his three sons. The next generation in the business also includes a daughter-in-law, a former daughter-in-law, and even a 21-year-old granddaughter. He recently spoke with Jonathan Berr for PhillyInc about his career, though he declined to divulge how the diamond stud stays in his beard.

PhillyInc: What's the secret of working with your family?
Robbins: It takes a lot of work. ... We consider [the business] a golden goose that lays golden eggs and we try to get everyone in the family that's working in the business to understand that.

(More below. But first, here below - and here - is a hilarious clip of the Rockin' Robbins Mascot in reheasal.)

Couresty Source

PHILADELPHIA, Sept. 28 /PRNewswire-FirstCall/ -- Mothers Work, Inc. (Nasdaq: MWRK), the world's leading maternity apparel retailer, today announced that Mothers Work and Sears(R) were unable to reach terms on a renewal of their leased department relationship. The Company currently operates the maternity apparel department in 502 Sears stores through sale of the Company's Two Hearts(R) Maternity branded merchandise. The Company anticipates that its relationship with Sears will terminate on June 20, 2008, the expiration date of its current agreement with Sears.

Rebecca Matthias, President and Chief Creative Officer of Mothers Work, noted, "While we are disappointed about the end of our relationship with Sears, we feel the decision not to proceed with a renewal is in the best interest of our stockholders since we were unable to reach terms on a renewal which would be favorable for Mothers Work and our stockholders. As we have previously stated, we are focused on generating sales that also generate an adequate return on investment and help us to increase shareholder value -- we are not interested in generating sales that do not help deliver shareholder value. We believe our current relationship with Sears has been a beneficial one for both parties and, most importantly, for the Sears customer. Even after our relationship with Sears ends, we remain well positioned to service the needs of that customer through our Destination Maternity(R) and Motherhood Maternity(R) stores as well as through our exclusive licensed relationship with Kohl's(R) and our leased departments at Macy's(R), Babies "R" Us(R), Boscov's(R) and Gordmans(R)."

- Thomas Ginsberg

It's no surprise that Amazon.com (Nasdaq:AMZN) and Ebay Inc. (Nasdaq:EBAY) top the list of shoppers' 50 favorite online retailers published by the National Retail Federation trade group in their Stores magazine. But among the top 50 are two online sites from Charming Shoppes Inc. (NYSE:CHRS), the Bensalem-based retail chain that operates Fashion Bug and Lane Bryant stores. LaneBryant.com ranks number 19 on the list with the comment, "no dangerous curves here. Right Fit helps shoppers find jeans that flatter fuller figures." Buzzing in at number 50 is FashionBug.com. "Led by plus-size sales and the return of Gitano, shoppers seem smitten -- or, in this case, bitten." Everyone's a comedian. Number 15 on the list is QVC.com, which is based in West Chester. "With videos, value, live TV and designer merchandise, QVC epitomizes multichannel retailing," the magazine says.
- Jane M. Von Bergen

It's hard not to get right to the bottom line in reading a judge's order and Philadelphia Common Pleas Court Judge Mark I. Bernstein's bottom line was impressive: $62.3 million more for Wal-Mart (NYSE:WMT) workers that a jury found had not been properly paid for rest breaks.

On the way to the bottom line, Bernstein had a great phrase about how "the law in its majesty applies equally to highly-paid executives and minimum wage clerks."

What he was talking about was the issue of fringe benefits -- benefits that are spelled out in contracts between employees (remember even CEOs are employees!) and their companies. In the case of CEOs, Bernstein writes about how, through litigation, they manage to get their "equity interests" or "put options" even though they had received their substantial base pay properly.

The same, he said, should apply to clerks and cashiers at Wal-Mart. They don't have equity interests or put options, but when their manual includes, under the heading of "my money," a promise of paid breaks -- that has to be considered legitimate or supplemental fringe pay, just as equity interests and put options are for CEOs. Everyone's protected under Pennsylvania's Wage Payment and Collection Law.

Wal-Mart says it should not be penalized because workers chose to work through their breaks, as some employees testified in last year's trial in Philadelphia. But other workers told the jury that they had no choice but to work through their breaks. The workload was so intense that there was no time for a breather. The jury agreed with those workers, awarding 187,000 current and former Pennsylvania Wal-Mart employees $78.5 million. The judge's order yesterday added an additional $62.3 million in penalties. Read more about the case in today's Inquirer.

- Jane M. Von Bergen

Don't try this at home - at least not anymore. Quantina Moore-Perry, 33, of North Carolina, has pleaded guilty to snookering QVC, owned by Liberty Media Corp. (NYSE: LINTA), out of $412,000 worth of high-end handbags, then trying to sell them on eBay. Prosecutors tell us that she had discovered, by accident, that if she ordered QVC items, then cancelled immediately, her credit card would be reimbursed but the items would be shipped anyway. QVC ultimately shipped 1,803 items to Moore-Perry that she did not pay for. She got caught after she posted some handbags for sale on eBay at a one-third of their market value. Savvy eBay shoppers who recognized the bags from QVC shows called QVC security. Moore-Perry pleaded guilty to one count of wire fraud in federal court in Philadelphia. Prosecutor Paul Gray says the scam may cost her two years in prison.

- John Shiffman

When David Mangini resigned from Mothers Work Inc. (NASDAQ: MWRK) last July as executive vice president of merchandising after a weak quarter, the company said he would stick around to help find his successor. Now the company says that Rebecca Matthias, the cofounder and president, actually will step into the job "on an interim basis" until a full-timer is found. Mangini now will formally take the consultant gig the company promised him as part of his separation.

We've been informed that Angela Di Medio Carlino of Haverford, co-owner of Carlino’s Market in Ardmore, died of a stroke at Bryn Mawr Hospital on Sunday, her 70th birthday. Her death came two days after the opening of the West Chester branch of Carlino’s Market, a combined pasta plant, pizza and bread bakery, and pastry shop, which also carries fresh produce, homemade sausage, imported cheeses and prepared food.

- Sally A. Downey

David I. Wexler, the former CFO of Brandow Auto Group in Abington, is being hit with a lawsuit (along with other people) over alleged mismanagement of the firm, which was just sold. The Intelligencer's John Anastasi has an outline of the tale this morning. Anastasi writes that Brandow Auto Group executives are accusing Wexler of "overstating profits to increase his bonuses." He also writes:

Efforts to reach Wexler for comment over the last two weeks were unsuccessful. He didn't return messages left on his cell phone or a message left at a number listed as a business contact line. His home phone number apparently has been disconnected.

The lawyer who originally represented Wexler -- Philadelphia attorney Stephen Springer -- said he no longer was involved in the case now that it had moved to bankruptcy court. He declined to comment further.

"I'm not suggesting the claims in the suit are legitimate -- just because an allegation is made doesn't make it true -- but the Brandow civil suit is looking for monetary damages against Mr. Wexler," said Paul Winterhalter, Wexler's Philadelphia bankruptcy attorney.

"Mr. Wexler has no money to give and no money to fight," Winterhalter said.

Allen Questrom, who got the nickname "master of merchandising" after turning around J.C. Penney Co. Inc. and leading several other big retailers, is taking up the job of nonexecutive chairman at Philadelphia-based Deb Shops Inc., formerly run by Marvin Rounick.

Questrom's appointment, initially announced in October, was part of a deal involving an infusion of funds by Prospect Capital Corp. to support the buyout of Deb Shops by Lee Equity Partners L.P., which bought Deb Shops for $395 million this year. Prospect has been backing Lee and said in its statement today that it has now made a second lien debt investment of $15 million into Deb Shops.

Questrom's path to Philly evidently came through Thomas H. Lee, for whom Questrom has served as a "senior adviser" for years. So says Prospect. Questrom has also led Federated Department Stores Inc., the Neiman Marcus Group Inc., and Barneys New York Inc.

- Thomas Ginsberg

Economic worries have not unsettled the upscale female shoppers at Urban Outfitters, Anthropologie, and Free People stores, Dick Hayne, chairman of Urban Outfitters Inc. , said this morning at the Greater Philadelphia Chamber of Commerce's annual Economic Outlook Breakfast.
"I do think she is feeling optimistic and will continue spending in 2008," said Hayne in the Grand Ballroom at the Park Hyatt in Center City.
Hayne said that even in areas that have been hardest hit by the housing downturn - such as Southwest Florida - the company is experiencing "reasonable growth."
"I'm feeling very optimistic. I guess I'm feeling apologetically so," he said, referring to the tough forecast for the national economy given by economist Mark Zandi at the meeting.

- Harold Brubaker

Prince Charming these investors are not, but en garde, a proxy fight has begun.

A group of investors in Charming Shoppes Inc. has nominated three people for election to the board of the Bensalem-based apparel retailer this spring. In response, Charming Shoppes issued a statement saying its current board will not be distracted by the "threat of a proxy contest from a dissident shareholder group."

And dissidents they are, led by Crescendo Partners L.P., a New York investment firm headed by Eric Rosenfeld. Described by Barron's as an activist hedge fund, Crescendo began buying Charming Shoppes shares in early December. Together with some other investors, the group now controls 9,276,805 shares, or about 8 percent of the shares outstanding.

Crescendo agitated the board of Topps Co., the baseball card maker last spring, when it was in a deal to be acquired by private-equity funds. And Crescendo is currently pressuring O'Charley's Inc., a restaurant chain, by nominating four people for election to its board.

On Monday, the group, calling itself the Charming Shoppes Full Value Committee (rolls right off the tongue), notified the company it was nominating:

* Michael Appel, a managing director of Quest Turnaround Advisors
* Arnaud Ajdler, a managing director of Crescendo Partners II L.P.
* Robert Frankfurt, president of Myca Partners.

Then today, the committee sent a letter to the board blistering its current strategy, how it allocates capital and its low stock price. The dissidents say they would encourage exploring the sale of real estate, credit card operations and Charming's catalog business; slow its store expansion; cut overhead; and buy back shares.

The president and CEO of Starwood Hotels & Resorts Worldwide Inc. says he will not stand for re-election to the board of Bensalem-based Jones Apparel Group Inc.

Frits van Paasschen, who joined the Jones board in November 2006, cites "heightened time and travel demands" from his current job, which he got in September. When he joined the Jones board, he had been the CEO of Coors Brewing Co., which was acquired by Canadian brewer Molson.

Jones' annual shareholders meeting likely will occur in June as it has in previous years.

- Mike Armstrong

Delaware, the state where many corporations are born and die, is host to the Chapter 11 bankruptcy case of Buffets Holdings Inc.

The Eagan, Minn., company is probably not familiar to many Philadelphians. If you're a fan of all-you-can-eat dining, you've probably bellied up to the 12 Old Country Buffets in the region.

Nothing will change at those buffets as the 626-store chain reorganizes after swallowing a big competitor, Ryan’s Restaurant Group Inc., more than a year ago. Among the unsecured creditors is Westville's J. Ambrogi Foods, which is owned $185,594.

View this bankruptcy as the treatment for a bad case of corporate indigestion rather than reflecting any change in the eating habits of Americans.

- Mike Armstrong

GSI Commerce Inc. chief executive and founder Michael Rubin made his first business deal before he could shave, at 12, and owned a chain of ski stores by the time he graduated high school in 1990.

Then he really got to work. Skipping a college degree, Rubin, raised in Lafayette Hill, started KPR Sports International Inc. (his parents initials), a maker of off-priced athletic footwear and apparel. He grew it into a $100 million publicly traded company, renamed it Global Sports, sold off the sportswear side, then renamed it again to GSI Commerce at the height of the dot-com bubble.

Shares in his King of Prussia, Pa.-based company that designs, builds and runs Web sites for retailers closed at an eight-year high last October, but since have slipped on concerns about the economy. Its clients have included Toys "R" US, the NFL and Gordon's Jewelers. It employs about 3,500 in nine states, Spain and the U.K. Last week, it announced a deal to acquire e-mail-based marketing firm e-Dialog Inc. of Lexington, Mass., for $157 million.

Q: You started a ski store at age 12. How did you persuade your parents to support you?
A: I always had a passion for both business and skiing. For me it was a natural. ... (My mother) said it wasn't the best idea (she) ever heard. So, I went to my father, who said he would be supportive as long as I did well in school.