American retailer Ascena Retail Group, which specializes in women’s clothing, announced a deal with Premium Apparel, a subsidiary of investment firm Sycamore Partners. According to the agreement, several Ascension-owned brands, including Ann Taylor, LOFT, Lane Bryant, and Lou & Grey, will be transferred to Premium Apparel.
The value of the deal was 540 million dollars. Its completion is scheduled for mid-December 2020. Simultaneously, Premium Apparel has committed to preserving a significant portion of retail stores and breaking relationships with suppliers and partners of the brands, saving most employees’ jobs.
Ascena is experiencing bad times. The pandemic, which has become a verdict for many retailers, has further aggravated the situation. The retailer, which owns several popular clothing brands, was forced to file for bankruptcy back in July 2020 after closing many stores. After the bankruptcy announcement, Ascena has already sold its brands, Justice and Catherines, which will continue to be developed exclusively online.
For fans of Ann Taylor and LOFT brands, the deal’s announcement will undoubtedly be good news. Their favorite brands will continue to exist and will likely get a new boost despite the entire industry’s difficult situation.
Photo credit: depositphotos.com.
