Ann Taylor and Lane Bryant parent company files for bankruptcy

Ascena Retail Group will close 1,600 stores, many in malls

National /
Jul.July 23, 2020 12:16 PM
Lane Bryant and Ann Taylor stores (Getty)

Lane Bryant and Ann Taylor stores (Getty)

Just a few years ago Ascena Retail Group was one of the largest retailers for women’s clothes. Thursday, it filed for bankruptcy.

The company, which owns Ann Taylor and Lane Bryant, will close 1,600 of its approximately 2,800 stores in an attempt to shed $1 billion of its $1.1 billion in debt, according to The New York Times.

The company said it was in the process of recovering from earlier troubles when the coronavirus hit.

“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,” Carrie Teffner, the interim executive chair of Ascena, said in a statement. “As a result, we took a strategic step forward today to protect the future of the business for all of our stakeholders.”

The closings are expected to take a toll on malls. Thirty-four percent of the company’s locations are housed inside malls, according to a March earnings call.

Before the coronavirus shutdowns, in-store sales accounted for about 60 percent of Ascena’s revenue, according to a preliminary earnings report in May. The closures drove a 45 percent drop in overall sales in the three months that ended May 2.

The pandemic has resulted in mass bankruptcies for retailers as stores shuttered and sales took a dive. RTW Retailwinds, which owns New York & Company, and Brooks Brothers, also filed for bankruptcy this month. [NYT] — Sasha Jones


Related Articles

arrow_forward_ios
Anita Durst and images of Chashama (Photos via Getty, Chashama)
Durst-backed nonprofit puts startups into empty storefronts
Durst-backed nonprofit puts startups into empty storefronts
Washington Prime Group CEO Lou Conforti (Twitter)
Washington Prime Group files for Chapter 11 bankruptcy
Washington Prime Group files for Chapter 11 bankruptcy
Hamed bin Zayed Al Nahyan (Getty)
Pandemic squeeze forces Abu Dhabi fund to reassess real estate exposure
Pandemic squeeze forces Abu Dhabi fund to reassess real estate exposure
Katerra facility (Katerra, Getty)
Katerra employees fire back with lawsuit over abrupt closure
Katerra employees fire back with lawsuit over abrupt closure
Camber Property Group Principals Andrew Moelis and Rick Gropper with 440 West 41st Street (Caro Enterprises, Inc.)
Camber Property buys bankrupt Hell’s Kitchen building for $40M
Camber Property buys bankrupt Hell’s Kitchen building for $40M
546 Broadway and Isaac Chetrit (Google Maps)
Uniqlo finalizes $160M buy of its flagship at 546 Broadway
Uniqlo finalizes $160M buy of its flagship at 546 Broadway
Softbank CEO Masayoshi Son (Getty, Katerra, iStock)
Katerra files for bankruptcy
Katerra files for bankruptcy
Sam Nazarian (Getty)
Sam Nazarian’s food venture expands to Saudi Arabia in $100M JV
Sam Nazarian’s food venture expands to Saudi Arabia in $100M JV
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...