Ascena Receives Court Approval To Sell Ann Taylor Brand, Other Labels

Ascena Retail Group Inc. has received the green light to sell the Lou & Grey, Loft, Lane Bryant and Ann Taylor labels to Sycamore Partners in a deal valued at approximately $1 billion that might close by next week, The Wall Street Journal reported.

The arrangement would keep the company as a going concern with a minimum of 900 retail locations, the newspaper reported. Ascena ran 1,500 stores across the United States toward the end of August.

Judge Kevin Huennekens from Richmond, Virginia’s U.S. Bankruptcy Court said Tuesday (Dec. 8) he would give the go-ahead to the sale of most of the retail group’s leftover property to Sycamore Partners.

Sycamore had consented in November to a $540 million purchase price, subject to some changes, the taking on of certain liabilities and other stipulations.

“This is a pretty marvelous transaction and I just wanted to applaud all of you for putting this together and getting this done,” Judge Huennekens said in a hearing conducted through video and telephone on Tuesday (Dec. 8).

In July, Ascena Retail Group, Inc. filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Eastern District of Virginia. The merchant and “certain of its subsidiaries” had arrived at a restructuring support agreement (RSA) with over 68 percent of secured term lenders.

In a statement at the time, Ascena Interim Executive Chair Carrie Teffner said, “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.”

The firm had also received commitments for a $150 million in a “new money term loan” from existing lenders.

Ascena Chief Executive Officer Gary Muto said in a statement at the time, “We look forward to our continued partnerships with our valued vendors, landlords and other stakeholders as we emerge from Chapter 11, and this pandemic, as a stronger company.”