New Jersey-based Ascena Retail, the parent company of brands including Ann Taylor, LOFT, Lane Bryant, Justice and Lou & Grey, has entered into a restructuring support agreement (“RSA”) with its creditors to reduce its debt of $1 Billion and provide increased financial flexibility. Ascena filed voluntary Chapter 11 petitions in the United States Bankruptcy Court for the Eastern District of Virginia.
Throughout the restructuring process, the company that received $150 Million in new financing will continue to operate its stores. The company plans to reduce the number of stores from approximately 2,800 stores to approximately 1,200 stores.
Ascena joins a growing list of almost 40 retailers that have filed for Chapter 11 in recent weeks, including Brooks Brothers, Neiman Marcus, J.C. Penney, J.Crew and Stage Stores.