Ascena Retail Group, owner of Ann Taylor, Officially Files For Bankruptcy

Lots of retailers and companies have been experiencing major hardships due to COVID-19. Ascena Retail Group, the owner of Ann Taylor, has officially filed for Chapter 11 bankruptcy.

The news was announced today and according to BOF, Ascena has debts of over $12 billion and has entered into a restructuring support agreement with over 68 percent of its secured term lenders.

This restructuring plan is expected to reduce Ascena’s debt by approximately $1 billion and it will also receive $150 from existing lenders.

“With the cash generated from our ongoing operations and the new money financing commitments we received from our lenders, we expect to have sufficient liquidity to meet our operational obligations during the court-supervised process,” Carrie Teffner, Ascena’s interim executive chair, said in a statement. “We expect to move through this process on an expedited timeframe.”

The company said in its statement that a number of stores across the U.S will close and it also added that all brands will be exiting Canada, Puerto Rico, and Mexico.

Ascena is the owner of stores Ann Taylor, Lane Bryant, LOFT, Lou & Grey, and Justice.

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