Ann Taylor owner files for Chapter 11 bankruptcy, Retail News, ET Retail
New York : The operator of Ann Taylor and Lane Bryant submitted for Chapter eleven individual bankruptcy safety on Thursday, the most up-to-date retailer to do so in the course of the pandemic. Mahwah, New Jersey-dependent Ascena Retail Group Inc., which operates nearly three,000 suppliers mostly at malls, experienced been dragged down by credit card debt and weak sales for yrs.
As part of its individual bankruptcy approach, the firm explained that it would close all of its Catherines suppliers, a “major variety” of Justice suppliers and a choose variety of Ann Taylor, Loft, Lane Bryant and Lou & Grey suppliers.
The firm explained it has reached an settlement with its lenders to lessen its credit card debt by USD one billion. It obtained USD one hundred fifty million in new funding to continue running in the course of its reorganization.
Ascena joins a developing listing of mostly apparel retailers that have submitted for Chapter eleven in new weeks, such as Brooks Brothers, Neiman Marcus, J.C. Penney, J.Crew and Phase Retailers. These retailers were being now having difficulties with weak sales, but the compelled closure of non-essential suppliers in March to lessen the distribute of the coronavirus set them more in peril.
Around 40 retailers, such as big and small organizations, have submitted for Chapter eleven individual bankruptcy so far this yr, according to S&P World wide Market Intelligence. That exceeds the variety of retail bankruptcies for all of last yr. About two dozen of them have sought individual bankruptcy safety considering the fact that the pandemic began.
