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

Standard Chartered & SAP Ariba team up to simplify financial solutions
Standard Chartered & SAP Ariba team up to simplify financial solutions
By Pankaj Singh

The partnership is planned to boost digitalization of whole supply chain, improving accuracy, transparency and efficiency for suppliers and buyers alike.   SAP Ariba & Standard Chartered are focused towards supporting sustainable financi...

Sun Pharma signs pact with CMS for generic drug sales in China
Sun Pharma signs pact with CMS for generic drug sales in China
By Pankaj Singh

The pharmaceutical company has entered into an agreement with China Medical System Holdings to manufacture and manage 7 generic products in Mainland China.   The company shares rose to 4.69% to hit a day high of Rs. 434.20 on the B...

737 Max crashes prevent Boeing from launching 777X long-haul jet
737 Max crashes prevent Boeing from launching 777X long-haul jet
By Pankaj Singh

Boeing has been suffering billions of dollars in losses resulting from the 737 Max crisis Boeing has reportedly been delaying the launch of 777X long-haul jet, as the company spends its resources in handling a crisis following the crash of two of it...