(Bloomberg) -- Ascena Retail Group Inc. said it's preparing to close its Dressbarn chain, which includes about 650 stores.
- Ascena, whose brands have come under pressure as consumer tastes shift, needs to make changes after posting more than $1 billion of losses in the past four years, according to data compiled by Bloomberg. The company said it hired A&G Realty Partners to help manage the real estate.
Key Insights
- “This decision was difficult, but necessary, as the Dressbarn chain has not been operating at an acceptable level of profitability in today's retail environment,” Dressbarn Chief Financial Officer Steven Taylor said in a statement.
- Details of the closing of individual locations will be shared as the wind-down progresses, the company said. Job cut plans will also be on a store-by-store basis.
- The retailer says it will continue to pay its vendors and suppliers in full for products and services during the process.
Market Reaction
- Shares of Ascena, which also owns Ann Taylor, jumped 2.6% to $1.17 in late trading.
Get More
- For the company statement, click here.
To contact the reporter on this story: Jonathan Roeder in Chicago at jroeder@bloomberg.net
To contact the editors responsible for this story: Anne Riley Moffat at ariley17@bloomberg.net, Lisa Wolfson
©2019 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
