Ascena rescued from bankruptcy by private equity firm

Ann Taylor parent company closes deal valued at $1 billion

Ascena brands CEO Gary Muto and Sycamore Partners CEO Rob Sweeney (Photos via Getty; LinkedIn)
Ascena brands CEO Gary Muto and Sycamore Partners CEO Rob Sweeney (Photos via Getty; LinkedIn)

Private-equity firm Sycamore Partners got the green light to grab several Ascena Retail Group brands — Ann Taylor, Lane Bryant, Loft and Lou & Grey — out of bankruptcy.

Judge Kevin Huennekens of the U.S. Bankruptcy Court in Richmond, Virginia, approved the sale of the majority of Ascena’s remaining assets to Sycamore Partners, the Wall Street Journal reported.

The firm agreed last month to a purchase price of $540 million. The deal overall is valued at $1 billion.

Read more

Lane Bryant and Ann Taylor stores (Getty)
Commercial
New York
Ann Taylor and Lane Bryant parent company files for bankruptcy
(Google Maps)
Tri-State
Original Ann Taylor in New Haven will permanently close
New York
Ann Taylor, LOFT parent company selling Mahwah office complex

Sign Up for the undefined Newsletter

“This is a pretty marvelous transaction and I just wanted to applaud all of you for putting this together and getting this done,” Judge Huennekens said during a hearing Tuesday.

Under the deal, set to close next week, at least 900 stores are expected to be saved. Ascena operated 1,500 U.S. locations as of August, down from 2,800 in better times for brick-and-mortar retail.

Ascena filed for bankruptcy in July, announcing plans to close 1,600 stores in an attempt to shed $1 billion of its $1.1 billion in debt.

[WSJ] — Sasha Jones