Parent of Ann Taylor, Lane Bryant Files for Chapter 11
Ascena Retail Group, the enterprise that owns Ann Taylor and Lane Bryant, has filed for Chapter 11 individual bankruptcy defense and designs to shut a important range of retailers, the enterprise stated.
The enterprise has posted working losses of $2.4 billion with only a person year of optimistic working profit considering that the summer time of 2014 but stated the COVID-19 disaster scuttled turnaround attempts.
Ascena, which was as soon as the largest clothing retailer for gals in the nation, has been closing retailers for a long time. It stated it will permanently shut some Ann Taylor, Loft, Lane Bryant, and Lou & Gray retailers and a “significant” range of Justice retailers. It also stated it would permanently shut all retailers throughout all of its brands in Canada, Puerto Rico, and Mexico.
The enterprise borrowed $230 million from existing credit rating lines, but it ended the third quarter in May perhaps with $439 million in income on its equilibrium sheet and personal debt of $1.3 billion, warning there was considerable question about its skill to endure. It shut all retailers on March 18 due to the pandemic, furloughing ninety{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} of its staff and withholding payments to landlords and distributors.
Dozens of shops, which includes Brooks Brothers, JCPenney, and J.Crew have filed for individual bankruptcy as COVID-19 wrought havoc throughout the business, although some organizations have viewed their stock cost make improvements to due to fascination by day traders.
Ascena stated it entered into a restructuring support agreement (RSA) with more than sixty eight{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} of its secured time period loan providers that will lessen its personal debt by somewhere around $1 billion and deliver improved financial overall flexibility. It has also received $150 million in new funds.
“The RSA formalizes our lenders’ frustrating support for a detailed system to deleverage our equilibrium sheet, suitable-dimension our functions, and inject new funds into the organization,” interim govt chair Carrie Teffner stated.
Michael Brochstein/SOPA Photographs/LightRocket by using Getty Photographs
