Ann Taylor parent agrees to sell assets to Sycamore Partners subsidiary for $540 million
Bankrupt Ann Taylor parent Ascena Retail Group Inc. has entered into an asset purchase agreement with Premium Apparel LLC, a subsidiary of private-equity firm Sycamore Partners, for $540 million. The deal includes the Ann Taylor, Loft, Lou & Grey and Lane Bryant brands. Under the terms of the agreement, Premium Apparel will hold on to a "substantial number" of these brands' stores and associates. As of Aug. 29, Ascena had 1,500 stores, including locations for plus-size retailer Cacique, which is not named as part of the deal. FullBeauty Brands Operations has agreed to acquire the intellectual property and e-commerce assets for Catherine's, another plus-size retailer. And BlueStar Alliance LLC has created Justice Brand Holdings LLC and acquired the intellectual property for the Justice tween brand. Ascena filed for bankruptcy this summer. This latest agreement is expected to be completed by mid-December. Ascena Retail stock has lost more than 96% of its value for the year to date, and closed Friday at 27 cents. The S&P 500 index is up 12.1% for 2020 so far.
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