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.
“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