Ann Taylor owner files for Chapter 11 bankruptcy, Retail News, ET Retail
New York : The operator of Ann Taylor and Lane Bryant submitted for Chapter eleven bankruptcy protection on Thursday, the most recent retailer to do so for the duration of the pandemic. Mahwah, New Jersey-dependent Ascena Retail Team Inc., which operates just about three,000 retailers generally at malls, had been dragged down by financial debt and weak gross sales for many years.
As component of its bankruptcy program, the enterprise stated that it would close all of its Catherines retailers, a “substantial quantity” of Justice retailers and a select quantity of Ann Taylor, Loft, Lane Bryant and Lou & Grey retailers.
The enterprise stated it has attained an settlement with its creditors to minimize its financial debt by USD one billion. It acquired USD 150 million in new funding to continue operating for the duration of its reorganization.
Ascena joins a increasing checklist of generally garments retailers that have submitted for Chapter eleven in latest weeks, including Brooks Brothers, Neiman Marcus, J.C. Penney, J.Crew and Phase Retailers. These retailers were by now struggling with weak gross sales, but the pressured closure of non-critical retailers in March to minimize the spread of the coronavirus put them even more in peril.
Around 40 retailers, including significant and modest organizations, have submitted for Chapter eleven bankruptcy so significantly this yr, according to S&P Worldwide Marketplace Intelligence. That exceeds the quantity of retail bankruptcies for all of previous yr. About two dozen of them have sought bankruptcy protection considering that the pandemic commenced.
