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
DoorDash's Tony Xu with 51 Eads Street and 6133 Jericho Turnpike
Startup plans LI convenience stores that shoppers can’t enter
Startup plans LI convenience stores that shoppers can’t enter
Strong month for US economy, but hospitality hiring slows
Jobs report shows more workers returning to office
Jobs report shows more workers returning to office
Jersey Mike's CEO Peter Cancro in front of 1500 Smithtown Avenue in Bohemia, Long Island (Jersey Mike's, Google Maps, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
Sandwich chain Jersey Mike’s expanding in NY
Sandwich chain Jersey Mike’s expanding in NY
Don Ghermezian, CEO, Triple Five Group, in front of the American Dream Mall in East Rutherford (Triple Five Group, American Dream Mall, iStock)
American Dream lost $60M in 2021
American Dream lost $60M in 2021
At Home's Lee Bird with 2100 Bartow Avenue (Google Maps, iStock) Bronx, New York
Home decor retailer leases 135K sf for first Bronx store
Home decor retailer leases 135K sf for first Bronx store
A photo illustration of Market by Macy's located at 321 State Street in Southlake, Texas (Google Maps, iStock)
Macy’s embracing smaller stores in department store shuffle
Macy’s embracing smaller stores in department store shuffle
A photo illustration of retail buildings in Brooklyn (iStock)
Brooklyn retail rents on the rise
Brooklyn retail rents on the rise
A photo illustration including a rendering of Third at Bankside in Mott Haven (top left), the Cunningham apartment complex in Queens Village (bottom left), and 47-05 Center Boulevard in Long Island City (right) (Google Maps, LoopNet, iStock)
Brookfield’s $438M Bronx deal tops outer-borough loans
Brookfield’s $438M Bronx deal tops outer-borough loans
arrow_forward_ios

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

Loading...