Dressbarn confirms 53 stores to close in August as wind down nears
Category: #headlines  By Pankaj Singh  Date: 2019-07-20
  • share
  • Twitter
  • Facebook
  • LinkedIn

Dressbarn confirms 53 stores to close in August as wind down nears

Ascena shares have been down by more than 75% this year and are trading at below $1

Ascena Retail Group, an American retailer for women’s clothing, recently announced that it is going to shut down 53 locations of Dressbarn by the end of August.

Rumors earlier suggest that the business will be forced to file for bankruptcy in order to break the leases. Ascena announced in May that it was planning to wind down Dressbarn and shut around 650 stores of the women’s clothing shop to focus on its profitable brands such as Loft and Taylor.

According to reliable sources, if the landlords did not agree to relieve the clothing brand of any lease obligations, the clothing store for women as a standalone unit wound end up filing for bankruptcy as it has already begun shutting down hundreds of stores in shopping centers and malls all over the country. The announcement could have been worse as retail property owners have also been affected by numerous store closures this year.

CFO of Dressbarn, Steven Taylor stated that the company has received overwhelming support from landlords for their plans that lets them implement their wind down in a way that provides the best recovery for the landlords.

The company has started to work with Gordan Brothers Retail Partners to help with the closing of stores and with Hilco Streambank to seek buyers for the intellectual property of Dressbarn. The company has been receiving fresh inventory but has encouraged customers for early shopping in order to get the best selection and avail outstanding gift cards.

Sources familiar with the matter said that Malfitano Partners has been managing the company’s overall wind down. Dressbarn has been around for over five decades but has been struggling for growth in apparel retailing due to customer shift towards fast-fashion retailers like Zara and H&M, Target and off-price chains like Ross Stores and T.J. Maxx while Amazon still takes bigger share of the online apparel market.

Source Credit- https://www.cnbc.com/2019/07/18/dressbarn-to-close-53-more-stores-in-august-wind-down-of-business-on-target.html

 

  • share
  • Twitter
  • Facebook
  • LinkedIn


About Author

Pankaj Singh    

Pankaj Singh

With an experience as an insurance underwriter and a freelance writer under his belt, Pankaj Singh boasts of quite some expertise in the field of content creation. A qualified Post Graduate in Management, Pankaj has also completed a detailed course in Digital Marketin...

Read More

More News By Pankaj Singh

CVS Health plans to recruit 25,000 people ahead of flu season
CVS Health plans to recruit 25,000 people ahead of flu season
By Pankaj Singh

American healthcare company, CVS Health Corp. says that it will hire up to 25,000 people for clinical and retail job positions ahead of the flu season at a time when administration of booster COVID-19 vaccination jabs are underway in the United State...

Dialpad, TelcoDataCloud to extend cloud communication in Australia
Dialpad, TelcoDataCloud to extend cloud communication in Australia
By Pankaj Singh

Dialpad Inc., a leading name in AI-led communication and collaboration, has joined hands with TelcoDataCloud – an independent telecom service and consultancy company. Through this alliance, both the companies aim at strengthening Australian bu...

Tesla to form energy traders’ team as it expands battery projects
Tesla to form energy traders’ team as it expands battery projects
By Pankaj Singh

American EV behemoth, Tesla is reportedly looking to trade energy capacity for which it is putting together a new team of traders to accomplish that precisely with its platform, Autobidder. Autobidder is a control and real-time trading platform for ...