Owner of Ann Taylor, Loft, other brands files for bankruptcy, will close some stores

July 23, 2020

The parent company of Ann Taylor, Loft and other brands has filed for bankruptcy but has reached an agreement with the majority of its lenders for restructuring.

Ascena Retail Group also operates Justice, Lane Bryant, Catherines, Lou & Grey and Cacique, and has 2,800 stores across all brands. In Sioux Falls, there are Lane Bryant, Loft and Justice stores in The Empire Mall. Catherines has a location at 3510 W. 41st St.

“The meaningful progress we have made driving sustainable growth, improving our operating margins and strengthening our financial foundation has been severely disrupted by the COVID-19 pandemic. As a result, we took a strategic step forward today to protect the future of the business for all of our stakeholders,” said Carrie Teffner, interim executive chair of Ascena. “The RSA (restructuring support agreement) formalizes our lenders’ overwhelming support for a comprehensive plan to deleverage our balance sheet, right-size our operations and inject new capital into the business.”

With court approval of the restructuring agreement, the New Jersey-based company plans to close “a significant number of Justice stores and a select number of Ann Taylor, Loft, Lane Bryant and Lou & Grey stores. … The final number of store closings will be determined based on the ability of Ascena and its landlords to reach agreement on sustainable lease structures.”

It will close all Catherines stores and seeks to sell that brand’s intellectual property assets to City Chic Collective Ltd.

All Ascena stores will close in Canada, Puerto Rico and Mexico.

Last year, Ascena closed its 650 Dress Barn stores, which included a Sioux Falls location, saying it wanted to focus on its more profitable brands.

Other retailers with Sioux Falls locations that have filed for bankruptcy this year include J.C. Penney, Pier 1 Imports, Hertz, the parent companies of Gordmans and Chuck E. Cheese, and NPC International, which owns the Pizza Hut franchises here.

Sioux Falls Justice, Loft, Lane Bryant stores escape initial closure list

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Owner of Ann Taylor, Loft, other brands files for bankruptcy, will close some stores

Another national retailer has filed for bankruptcy and plans to close some of its stores.

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