Ascena Retail Group has entered into an asset purchase agreement with Premium Apparel LLC, an affiliate of private-equity firm Sycamore Partners, to sell its Ann Taylor, LOFT, Lane Bryant and Lou & Grey brands for $540 million.
Under the agreement, Premium Apparel has committed to retaining a substantial portion of both the retail stores and associates affiliated with these brands, which span ecommerce websites and approximately 1,500 stores. The transaction is expected to be completed by mid-December.
“The commitment Sycamore has made to our people and business is a testament to the long-term growth potential of our brands,” said Gary Muto, CEO of Ascena in a statement. “At Ascena, we have made significant progress in our financial restructuring process. We have worked diligently to maximize the value of all of our brands. As our customers’ needs continue to evolve, our teams remain focused on delivering great fashion and memorable experiences, however our customer chooses to shop.”
In a move designed to lower its debt load by as much as $1 billion, Ascena filed for bankruptcy in July 2020. In October Ascena sold the intellectual property, ecommerce business and other assets of its Justice brand to Premier Brands Justice.