Ascena completes sale of its premium brands
The sale, first announced in November and priced at $540 million, comes as the Mahwah, New Jersey-based Ascena works to exit bankruptcy. The company filed for Chapter 11 in July, as a consequence of the economic impact of the Covid-19 pandemic. As part of the deal, Premium Apparel said it has "committed to retaining a substantial portion of the retail stores, associates, and corporate operations affiliated with these brands."
“We are pleased to have completed this transaction, which secures a path for the long-term success of Ann Taylor, Loft, Lou & Grey, and Lane Bryant,” said Gary Muto, chief executive officer of Ascena. “We have worked diligently to maximize the value of our brands, and we are confident they will thrive under Sycamore’s ownership.”
“I would like to thank our associates, who have remained focused on meeting our customers’ needs throughout our financial restructuring process. While we have certainly faced obstacles in the challenging retail landscape brought on by the global pandemic, our associates have consistently demonstrated leadership, professionalism and dedication to our customers and to each other. Ann Taylor, Loft, Lou & Grey and Lane Bryant will continue to serve customers through the holiday season and beyond.”
Outside of its premium brands, Ascena sold its Catherines brand to FullBeauty Brands for just shy of $41 million in September, and sold all intellectual property and certain other brand assets of its tween brand, Justice, to an entity formed by Bluestar Alliance LLC for a total of approximately $90 million in November.