Ascena Retail Group inc. has entered into an asset purchase agreement with Premium Apparel LLC, an affiliate of Sycamore Partners, to sell ascena’s Ann Taylor, Loft, Lane Bryant and Lou & Grey brands for $540 million. Under the agreement, Premium Apparel has committed to retaining a substantial portion of the retail stores and associates affiliated with these brands.
“We are pleased to announce an agreement with Sycamore Partners, an experienced and trusted leader in the retail sector. The commitment Sycamore has made to our people and business is a testament to the long-term growth potential of our brands,” said Gary Muto, Chief Executive Officer. “At ascena, we have made significant progress in our financial restructuring process. We have worked diligently to maximize the value of all of our brands, and today’s agreement with Sycamore is the latest example.”
The transaction is expected to be completed by mid-December.
“Ann Taylor, LOFT, Lane Bryant and Lou & Grey are well-known brands, each with passionate associates and loyal customers,” said Stefan Kaluzny, managing director of Sycamore Partners. “These brands have significant potential, and we are excited about the opportunity to partner with ascena’s talented team to continue delivering new and relevant experiences for customers.”
In previous ascena dispositions, FullBeauty Brands Operations,LLC has completed its acquisition of Catherines’ intellectual property assets and e-commerce business, and Justice Brand Holdings LLC, an entity formed by Bluestar Alliance LLC, has completed its acquisition of the intellectual property of Justice.
