Charming Shoppes shares rise as CEO exits

Shares rose 14 cents, or 3 percent, to $4.84. The stock has traded between $4.01 and $11.24 during the last 52 weeks.

In May, the company reported a first-quarter loss after posting the worst sales drop in established stores in at least four years.

Earlier in May, the parent of Lane Bryant, Fashion Bug and Catherines stores faced a disgruntled shareholder group during its shareholder meeting.

At the meeting, a shareholder group made up of hedge funds Crescendo Partners and Myca Partners, owners of 9.3 million shares, equaling a 7.9 percent stake, and Charming Shoppes, agreed after negotiations that the shareholder group would nominate two people to Charming Shoppes' board, while Charming Shoppes added two industry veterans it wanted.

On Wednesday, Charming Shoppes said in a statement that Bern "agreed that now is the appropriate time for a change in leadership of the company." Thomas Weisel Partners analyst Liz Dunn, who rates the company "Market Perform," said in a note to investors on Wednesday the change could prove to be a positive.

"We believe getting some fresh perspective could drive improved results," she wrote. "The board has clearly been pushing for change and a new CEO could preside over a shift in the strategic direction and make different capital allocation decisions with the help of the recently reconstructed board."