Ann Taylor Parent Goes Bankrupt, Plans to Shut Over 1,000 Stores

[RandySF]

(Bloomberg) -- Ascena Retail Group Inc., owner of the Ann Taylor and Lane Bryant clothing chains, will close more than half its stores and hand control to its lenders after the Covid-19 pandemic tipped the debt-laden retailer into bankruptcy.

The court filing on Thursday is the latest among U.S. retailers that have been pushed over the edge by shutdowns tied to the outbreak. The Chapter 11 action allows Ascena to avoid a permanent shutdown, cut its borrowings and close weak stores to minimize costs.

Ascena has about 40,000 employees, according to court papers, and some of them are bound to lose their jobs. The company plans to shut select locations in the U.S., all its stores in Canada, Puerto Rico and Mexico, and the entire Catherines chain. Ascena’s other brands include Loft, Justice and Lou & Grey stores.

Ultimately, Ascena expects to cut its 2,800 stores down to just 1,200, and current shareholders will be wiped out, according to court papers filed in U.S. Bankruptcy Court in the Eastern District of Virginia.



https://finance.yahoo.com/news/ann-taylor-parent-files-bankruptcy-102426266.html

[jimfields33]

1. Not surprising since malls are mostly closed right now.

[Demovictory9]

4. and women not needing "go to work clothes"

[mr_lebowski]

2. 'Some of them are bound to lose their jobs?'

Considering they're cutting their store count from 2,800 to 1,200 ... I suppose that's a tactful way of putting it.

[Chellee]

3. Especially the people in Canada, Mexico, and Puerto Rico.

Since all of those stores are closing.