Parent of Ann Taylor, Lane Bryant Files for Chapter 11
Ascena Retail Team, the business that owns Ann Taylor and Lane Bryant, has submitted for Chapter eleven bankruptcy defense and designs to near a considerable range of suppliers, the business reported.
The business has posted working losses of $two.four billion with only just one year of positive working gain since the summer season of 2014 but reported the COVID-19 disaster scuttled turnaround tries.
Ascena, which was as soon as the biggest outfits retailer for ladies in the nation, has been closing suppliers for decades. It reported it will permanently near some Ann Taylor, Loft, Lane Bryant, and Lou & Gray suppliers and a “significant” range of Justice suppliers. It also reported it would permanently near all suppliers across all of its makes in Canada, Puerto Rico, and Mexico.
The business borrowed $230 million from existing credit history lines, but it finished the third quarter in May perhaps with $439 million in cash on its balance sheet and debt of $one.3 billion, warning there was sizeable doubt about its ability to endure. It shut all suppliers on March eighteen due to the pandemic, furloughing ninety% of its personnel and withholding payments to landlords and vendors.
Dozens of stores, which include Brooks Brothers, JCPenney, and J.Crew have submitted for bankruptcy as COVID-19 wrought havoc across the marketplace, nevertheless some providers have seen their stock rate enhance due to desire by day traders.
Ascena reported it entered into a restructuring support agreement (RSA) with above sixty eight% of its secured phrase lenders that will lower its debt by somewhere around $one billion and provide increased economical versatility. It has also been given $a hundred and fifty million in new cash.
“The RSA formalizes our lenders’ mind-boggling support for a in depth prepare to deleverage our balance sheet, appropriate-dimension our functions, and inject new cash into the company,” interim govt chair Carrie Teffner reported.
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