Destination Maternity Corporation Announces Senior Leadership Transition and Appoints New Board Member

CEO Marla Ryan to Step Down; Board Initiates CEO Search

Lisa Gavales Named Chair of Newly Created Interim Office of the CEO

Company Adds Gene Davis to Board of Directors

MOORESTOWN, N.J.–(BUSINESS WIRE)–Destination Maternity Corporation (Nasdaq:DEST) announced today that
Marla Ryan, by mutual agreement with the Board of Directors, will step
down as Chief Executive Officer, effective June 13, 2019. Destination
Maternity also announced it has appointed Gene Davis to its Board of
Directors. Upon his appointment, Mr. Davis will serve as Chairman of the
Destination Maternity Board of Directors.

Senior Leadership Transition

Destination Maternity today announced that Marla Ryan, by mutual
agreement with the Board, will step down as Chief Executive Officer,
effective June 13, 2019. Ms. Ryan will remain with the Company to assist
with the transition and will also assume a new role as President of
product design, sourcing and merchandising.

The Destination Maternity Board has created an interim Office of the
CEO, which will provide ongoing leadership and oversight of the
day-to-day operations of the Company while a search is conducted for a
new CEO. The interim Office of the CEO will be comprised of Lisa
Gavales, a member of the Board of Directors, Marla Ryan, now President
of product design, sourcing and merchandising and Dave Helkey, current
CFO and COO. Ms. Gavales will serve as Chair of the Office of the CEO.

Lisa Gavales, a member of Destination Maternity’s Board of Directors,
said, “As the Company strives to improve its performance and deliver
profitable growth, the Board of Directors unanimously determined that
the Company would benefit from new leadership and enhanced execution. In
addition to beginning an active and immediate search for a new permanent
CEO, the Board will also conduct a comprehensive review of the Company’s
strategic initiatives to ensure that the Company is pursuing an
aggressive strategy to effect real and sizeable change in the business.”

Ms. Gavales added, “We would also like to thank Marla for her tireless
efforts and dedication as CEO of Destination Maternity and we look
forward to her continued contributions as she moves into her new role
with the Company.”

New Board Member

Destination Maternity also announced today that Gene Davis will join its
Board of Directors, effective June 13, 2019, serving as Chairman of the
Destination Maternity Board of Directors.

“We are thrilled to be adding Gene to the Board,” said Ms. Gavales.
“Gene is a uniquely talented executive who brings highly relevant
turnaround management and strategic planning experience that will be
valuable to the Board as we look to strengthen the business and drive
long term shareholder value. We look forward to his immediate
contributions.”

Currently, Mr. Davis serves as the Chairman and Chief Executive Officer
of PIRINATE Consulting Group, LLC, a privately held consulting firm
specializing in turnaround management, merger and acquisition
consulting, hostile and friendly takeovers, proxy contests and strategic
planning advisory services for domestic and international public and
private business entities. Mr. Davis’ career includes extensive retail
experience. He has advised, managed and served in various senior
leadership positions in the retail space throughout his career,
specializing in difficult turnaround situations with a focus on
maximizing shareholder value. He was the President, Vice Chairman and a
director of Emerson Radio Corporation, a consumer electronics company,
from 1990 to 1997 and was the Chief Executive Officer and Vice Chairman
of Sport Supply Group, Inc., a direct-mail marketer of sports equipment,
from 1996 to 1997.

Mr. Davis began his career in 1980 as an attorney and international
negotiator with Exxon Corporation and Standard Oil Company (Indiana) and
was in private practice from 1984 to 1998. Mr. Davis is and has also
been a director of several private and public companies in various
industries.

About Destination Maternity

Destination Maternity is the leading designer and omni-channel retailer
of maternity apparel in the United States, with the only nationwide
chain of maternity apparel specialty stores, as well as a deep and
expansive assortment available through multiple online distribution
points, including our three brand-specific websites. As of May 4, 2019,
we operate 998 retail locations, including 452 stores in the United
States, Canada and Puerto Rico, and 546 leased departments located
within department stores and baby specialty stores throughout the United
States and Canada. We also sell our merchandise on the Internet,
primarily through our Motherhood.com, APeaInThePod.com and
DestinationMaternity.com websites. We also sell our merchandise through
our Canadian website, MotherhoodCanada.ca, through Amazon.com in the
United States, and through websites of certain of our retail partners,
including Macys.com. Our 452 stores operate under three retail
nameplates: Motherhood Maternity®, A Pea in the Pod® and Destination
Maternity®. We also operate 546 leased departments within leading
retailers such as Macy’s®, buybuy BABY® and Boscov’s®. Generally, we are
the exclusive maternity apparel provider in our leased department
locations.

Forward-Looking Statements

The Company cautions that any forward-looking statements (as such term
is defined in the Private Securities Litigation Reform Act of 1995)
contained in this press release or made from time to time by management
of the Company, including those regarding earnings, net sales,
comparable sales, other results of operations, liquidity and financial
condition, and various business initiatives, involve risks and
uncertainties, and are subject to change based on various important
factors. The following factors, among others, in some cases have
affected and in the future could affect the Company’s financial
performance and actual results and could cause actual results to differ
materially from those expressed or implied in any such forward-looking
statements: the strength or weakness of the retail industry in general
and of apparel purchases in particular, our ability to successfully
manage our various business initiatives, the success of our
international business and its expansion, our ability to successfully
manage and retain our leased department and international franchise
relationships and marketing partnerships, future sales trends in our
various sales channels, unusual weather patterns, changes in consumer
spending patterns, raw material price increases, overall economic
conditions and other factors affecting consumer confidence, demographics
and other macroeconomic factors that may impact the level of spending
for apparel (such as fluctuations in pregnancy rates and birth rates),
expense savings initiatives, our ability to anticipate and respond to
fashion trends and consumer preferences, unanticipated fluctuations in
our operating results, the impact of competition and fluctuations in the
price, availability and quality of raw materials and contracted
products, availability of suitable store locations, continued
availability of capital and financing, our ability to hire, develop and
retain senior management and sales associates, our ability to develop
and source merchandise, our ability to receive production from foreign
sources on a timely basis, our compliance with applicable financial and
other covenants under our financing arrangements, potential debt
prepayments, the trading liquidity of our common stock, changes in
market interest rates, our compliance with certain tax incentive and
abatement programs, war or acts of terrorism and other factors set forth
in the Company’s periodic filings with the SEC, or in materials
incorporated therein by reference.

Although it is believed that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be given
that such expectations will prove to have been correct and persons
reading this announcement are therefore cautioned not to place undue
reliance on these forward-looking statements which speak only as at the
date of this announcement. The Company assumes no obligation to update
or revise the information contained in this announcement (whether as a
result of new information, future events or otherwise), except as
required by applicable law.

Contacts

Sloane & Company
Erica Bartsch / Alex Kovtun, 212-486-9500
[email protected]
[email protected]

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