Questrom to head now private Deb Shops

PHILADELPHIA Allen Questrom, former ceo of JCPenney and Federated Department Stores (now Macy's Inc.), is expected to assume the role of non-executive chairman of Deb Shops, which is being acquired by Lee Equity Partners. Questrom, who has more than 40 years of retail apparel experience, currently serves as senior advisor for the private equity firm.

"In a very competitive junior apparel segment, Deb Shops is differentiated by its fashionable, value-oriented merchandise and strong positioning with junior regular and plus-size customers. We look forward to growing the company's already strong customer base and continuing to roll out its plus-size merchandise offering. The company's demonstrated strength in its markets is a testament to the quality of the franchise that the current leadership has built. We believe that with our firm's involvement, Deb Shops can maintain and grow its wonderful relationship with its customers, while presenting a renewed, more exciting offering in the years to come. I'm looking forward to working with the Deb team," said Questrom.

Deb Shops announced today that it has agreed to sell 100% of its outstanding shares to Lee Equity Partners through its affiliate DSI Holdings for $27.25 per share of common stock in an all-cash transaction. Total equity value of the transaction is approximately $395 million. Lee Equity will finance this acquisition through cash and new committed credit facilities. Subject to customary regulatory requirements and shareholder approval, the transaction is expected to close in the third fiscal quarter of 2007.