ascena retail group Announces Dressbarn Wind Down Successfully Completed
February 19 2020 - 6:01PM
ascena retail group, inc. (Nasdaq: ASNA) (“ascena” or the
“Company”) today announced that the Dressbarn brand has completed
the orderly wind down of its business operations, closing over 650
stores and successfully eliminating over $300 million of lease
liability.
Favorable sales performance by Dressbarn since
the announcement fully offset the costs incurred in the wind down
of approximately $60 million. All Dressbarn stores have now
been closed, and the Dressbarn intellectual property assets and its
ecommerce business have been sold and transitioned to its new
owner.
“The completion of the Dressbarn wind down
concludes a significant step in ascena’s ongoing transformation and
is in line with the Company’s three key priorities: driving
sustainable growth, improving operating margins, and optimizing our
capital structure,” said Gary Muto, Chief Executive Officer of
ascena. “Thanks to strong leadership and focused execution, we
mitigated the financial impact of the wind down while maintaining
our commitment to treat the Dressbarn associates and other key
stakeholders fairly and with respect throughout the process. We
appreciate the tremendous support Dressbarn received from
landlords, vendors, associates and suppliers.”
About ascena retail group,
inc.
ascena retail group, inc. (Nasdaq: ASNA) is a
national specialty retailer offering apparel, shoes, and
accessories for women under the Premium Fashion segment (Ann
Taylor, LOFT, and Lou & Grey), Plus Fashion segment (Lane
Bryant, Catherines and Cacique) and for tween girls under the Kids
Fashion segment (Justice). ascena retail group, inc. through
its retail brands operates ecommerce websites and approximately
2,800 stores throughout the United States, Canada, and Puerto
Rico.
For more information about ascena retail group,
inc. visit: ascenaretail.com, AnnTaylor.com, factory.anntaylor.com,
LOFT.com, outlet.loft.com, louandgrey.com, lanebryant.com,
Catherines.com, and shopjustice.com.
Forward-Looking Statements
Certain statements made within this press
release may constitute “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially.
Forward-looking statements are statements related to future, not
past, events, and often contain words such as "expect,"
"anticipate," "intend," "plan," "believe," "seek," "see," "will,"
"would," "estimate," "forecast," "target," "preliminary," or
"range," and risks associated with the ability to achieve a
successful outcome for its portfolio brands and to otherwise
achieve its business strategies. The Company does not undertake to
publicly update or review its forward-looking statements even if
experience or future changes make it clear that its projected
results expressed or implied will not be achieved. Detailed
information concerning a number of factors that could cause actual
results to differ materially from the information contained herein
is readily available in the Company’s most recent Annual Report on
Form 10-K.
Media Contact: Shawn BuchananCorporate
Communications (212) 541-3418shawn_buchanan@ascenaretail.com
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