Current owner Ascena Retail Group voluntarily filed for Chapter 11 bankruptcy protection in July 2020, and agreed to sell the Justice brand earlier in October. Ascena had operated approximately 2,800 stores and was hit hard by the pandemic; its restructuring plan is designed to reduce the company’s debt load by $1 billion. Ascena’s portfolio includes the Ann Taylor, LOFT and Lane Bryant brands.
Bluestar’s bid, valued at more than $60 million, consists of $44 million in cash and includes the Justice IP and related assets as well as assumption of some liabilities.
“We offered a bid that we believe speaks to the strong existing connection consumers have to the Justice brand and its future potential,” said Joey Gabbay, CEO of Bluestar Alliance in a statement.
The potential acquirer believes the Justice brand will be a good fit with its portfolio. “We have had significant success in the teen, tween and children’s markets, and believe the Justice brand will benefit from our existing relationships and sizeable market share,” said Ralph Gindi, COO of Bluestar Alliance.