Parent of Ann Taylor, Lane Bryant Files for Chapter 11
Ascena Retail Group, the organization that owns Ann Taylor and Lane Bryant, has filed for Chapter eleven personal bankruptcy defense and ideas to shut a important range of retailers, the organization claimed.
The organization has posted operating losses of $two.four billion with only one 12 months of positive operating profit considering that the summer months of 2014 but claimed the COVID-19 disaster scuttled turnaround makes an attempt.
Ascena, which was the moment the most important clothes retailer for females in the country, has been closing retailers for many years. It claimed it will permanently shut some Ann Taylor, Loft, Lane Bryant, and Lou & Gray retailers and a “significant” range of Justice retailers. It also claimed it would permanently shut all retailers across all of its models in Canada, Puerto Rico, and Mexico.
The organization borrowed $230 million from present credit strains, but it finished the third quarter in Might with $439 million in income on its harmony sheet and financial debt of $1.three billion, warning there was significant doubt about its potential to endure. It shut all retailers on March 18 due to the pandemic, furloughing ninety% of its personnel and withholding payments to landlords and sellers.
Dozens of stores, together with Brooks Brothers, JCPenney, and J.Crew have filed for personal bankruptcy as COVID-19 wrought havoc across the market, though some firms have observed their stock price strengthen due to curiosity by day traders.
Ascena claimed it entered into a restructuring guidance agreement (RSA) with more than sixty eight% of its secured phrase lenders that will minimize its financial debt by roughly $1 billion and deliver enhanced economical versatility. It has also acquired $one hundred fifty million in new cash.
“The RSA formalizes our lenders’ overpowering guidance for a in depth system to deleverage our harmony sheet, ideal-dimensions our operations, and inject new cash into the company,” interim govt chair Carrie Teffner claimed.
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