Authentic Brands, Sycamore eye buy of Ann Taylor parent company

The companies, along with mall owners Simon and Brookfield, have been buying bankrupt retailers

National /
Jul.July 27, 2020 10:30 AM
Authentic Brands CEO Jamie Salter and an Ann Taylor store (Getty)

Authentic Brands CEO Jamie Salter and an Ann Taylor store (Getty)

Authentic Brands wants to make another big investment in the retail apocalypse.

The company, along with frequent partners Simon Property Group and Brookfield, is eyeing the purchase of Ascena Group, according to Bloomberg. The parent company of Ann Taylor, Loft, and Lane Bryant filed for Chapter 11 bankruptcy last week.

Private equity firm Sycamore Partners is also looking to bid on the struggling company.

In its filing, the terms of which remain fluid, Ascena said it would close 1,200 of its 2,800 locations putting many of its 40,000 employees at risk of unemployment.

Authentic and Sycamore have emerged as major players in the consolidation of retail, a trend ignited by e-commerce and fueled by coronavirus closures. The companies are also looking to purchase bankrupt department store J.C. Penney.

Ascena’s current bankruptcy terms will allow lenders — Bain Capital and Monarch Alternative Capital are reportedly among them — to acquire equity and appoint directors to its board in exchange for relieving a portion of its debt.

While Bain and Monarch plan to each appoint their own director, a consortium of other lenders including Eaton Vance and Lion Point will collectively appoint a single director to the board.

In the last 18 months, Authentic acquired Forever 21, Barneys New York and Sports Illustrated, and has bought more than 40 companies since 2010.

Sycamore has invested in companies such as Staples, The Limited, Aerospostale and Hot Topic.

Ascena’s other brands include Lou & Grey, Cacique, Justice and Catherines. The company said it will close all its Catherine’s locations, and auction off its assets. [Bloomberg] — Orion Jones


Related Articles

arrow_forward_ios
Brookfield Property Partners CEO Brian Kingston and 300 Vesey Street, at far left (Brookfield)
Brookfield scores $224M refi on Battery Park office tower
Brookfield scores $224M refi on Battery Park office tower
The grand reopening: As restrictions lift, CRE markets race toward recovery
The grand reopening: As restrictions lift, CRE markets race toward recovery
The grand reopening: As restrictions lift, CRE markets race toward recovery
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
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
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
Victoria's Secret CEO John Mehas. (Getty)
Westfield sues Victoria’s Secret over WTC mall location
Westfield sues Victoria’s Secret over WTC mall location
arrow_forward_ios

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

Loading...