Justice stores to close with bankruptcy sale
Nov. 12, 2020
Remaining Justice “tween” clothing stores across the country, including the one in The Empire Mall, will close, but the brand will live on through a new owner.
Ascena Retail Group, which filed for bankruptcy in July, has received a $90 million bid for Justice’s intellectual property and other brand assets and the assumption of some liabilities. With court approval expected today, the new owner will be Justice Brand Holdings, which was formed by brand management company Bluestar Alliance.
“Justice stores will remain open and continue serving customers through the holiday season,” Ascena said in a news release. “A wind down of all Justice locations is expected to conclude by early 2021.”
While not mentioning the closure of stores in its own news release, Bluestar Alliance noted that “Justice is an important asset with years of growth ahead.”
“Justice is the world’s best-known tween brand, yet it still has the capacity to grow, particularly in categories and distribution,” Bluestar Alliance co-founder Ralph Gindi said. “Our goal is to create even deeper connections with our consumers and the brand, while expanding Justice’s reach and footprint. Our future retailer partner will appreciate the heritage of the brand, and truly commit to servicing the Justice customer.”
Bluestar Alliance’s portfolio includes department store brands such as Brookstone, Hurley, Tahari and Limited Too.
Ascena continues to operate its Ann Taylor, Loft, Lane Bryant and Lou & Grey brands. After it filed for bankruptcy in July, it closed its Catherines stores, including one in Sioux Falls, and sold off the plus-size brand for $41 million to FullBeauty.
Lane Bryant and Loft have stores in The Empire Mall.