Ann Taylor parent files for
bankruptcy protection

By: Kelly Tyko
USA Today

..... The parent company of Lane Bryant, ann Taylor and the Justice tween brand has field for Chapter 11 bankruptcy protection, a move spurred by the COVID-19 pandemic.
..... New Jersey-based Ascena Retail Group, which also operates Ann Taylor Loft, Catherines, Lou & Gray and Cacique, plans to "reduce their store fleet from approximately 2,800 stores to approximately 1,200 stores," the company said in court records Thursday. [07/23/2020]
..... In a news release, the company said it plans to shutter all of its Catherines plus-size stores as well as a "significant number of Justice stores and a select number of Ann Taylor LOFT, Lane Brayt and Lou & Gray stores."
.... Like other apparel retailer with a commitment to shopping malls. Ascena was dealing with declining foot traffic long before the coronavirus pandemic. It joins a rapidly growing list of retailers that have stumbled into bankruptcy amid the restrictions of COVID-19.
..... "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," Carrie Teffner, interim executive chair, said in the release. "As a result, we took a strategic step forward today to protect the future of the business for all of our stakeholders."
..... The company says it has nearly 40,000 employees.
..... According to frequently asked questions posted on Ascena's restricting website, the final number of store closings "will be determined based on the ability of Ascena and our landlords to reach agreement on sustainable lease structures."
.... Closing sales are expected to go 30 to 60 days from :the filing date depending on the store location," Ascena said.
..... Court records show that SB360 Capital Partners will manage Catherines' going-out-of-business liquidation sales as well as the closing sales at its sister brands. SB360 managed Charlotte Russe's 2019 liquidation and is currently handling Modell's Sporting Goods and Tuesday Morning closing sales.
..... As many as 25,000 stores could shutter this year [2020] as businesses continue to feel the impacts of the pandemic, according to a recent report from Corsight Research.
.... Brooks Brothers, lucky Brand, J.C. Penney, Neiman Marcus, Sur La Table and J. Crew have all filed for Chapter 11 since May. [2020]
..... Other retailers that haven't filed for bankruptcy also plan to shutter locations, including Victoria's secret, Nordstrom and Signet Jewelers, parent company of Kay, Zales and Jared. This week, [07/22/2020] Tailored Brands, parent company of Men's Warehouse, said it will close up to 500 stores.

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