Newswire

Ascena Files for Chapter 11 Bankruptcy

PRNewsfoto/Ascena Retail Group Inc.

Ascena Retail Group Inc. and certain of its subsidiaries announced that it has entered into a restructuring support agreement (“RSA”) with over 68% of its secured term lenders. The RSA contemplates agreed-upon terms for a pre-arranged financial restructuring plan that is expected to reduce Ascena’s debt by approximately $1 billion. To implement the terms of the RSA, the company has filed voluntary Chapter 11 petitions in the United States Bankruptcy Court for the Eastern District of Virginia.

“Ann Taylor, LOFT, Lane Bryant, Justice and Lou & Grey have incredibly loyal customers who are at the center of everything we do,” said Gary Muto, CEO of Ascena. “These iconic brands have significant long-term potential and we continue to deliver on their mission to provide all women and girls with fashion and inspiration to live confidently every day. This comprehensive restructuring, as well as the actions we are taking to optimize our brand portfolio and store fleet, mark a new start for our company and will allow us to expand our customer-focused strategies across her mobile, online and store experiences.”

Throughout the restructuring process, the company’s brands, including Ann Taylor, Loft, Lane Bryant, Justice and Lou & Grey, will continue to operate. Currently, the company has approximately 95% of its store base reopened and continues to serve customers through its e-commerce brand websites.

“The meaningful progress we have made driving sustainable growth, improving our operating margins and strengthening our financial foundation has been severely disrupted by the COVID-19 pandemic. As a result, we took a strategic step forward today to protect the future of the business for all of our stakeholders,” said Carrie Teffner, interim executive chair of Ascena. “The RSA formalizes our lenders’ overwhelming support for a comprehensive plan to deleverage our balance sheet, right-size our operations and inject new capital into the business. With the cash generated from our ongoing operations and the new money financing commitments we received from our lenders, we expect to have sufficient liquidity to meet our operational obligations during the court-supervised process. We expect to move through this process on an expedited timeframe as oGary Muto, Chief Executive Officer of ascena commented, “Ann Taylor, LOFT, Lane Bryant, Justice and Lou & Grey have incredibly loyal customers who are at the center of everything we do. These iconic brands have significant long-term potential and we continue to deliver on their mission to provide all women and girls with fashion and inspiration to live confidently every day. This comprehensive restructuring, as well as the actions we are taking to optimize our brand portfolio and store fleet, mark a new start for our company and will allow us to expand our customer-focused strategies across her mobile, online, and store experiences.”

Sign Up for Newswire


[ctct ctct-765 type:hidden 'Fashion Mannuscript Newswire::#156']

Advertisements