The retail biz is getting tougher and tougher these days and it seems there’s no end in sight. It’s just been announced that the owner of Ann Taylor and Lane Bryant, Ascena Retail Group Inc., is preparing to file for bankruptcy.
Bloomberg reports that Ascena could enter Chapter 11 this week as the company has experienced years of major financial loss and COVID-19 certainly didn’t help matters either.
“COVID-19 has significantly disrupted our business. Despite aggressive actions to preserve liquidity, the pandemic has significantly reduced our earnings and cash flow, resulting in increased levels of debt and deferred liabilities. With retail stores making up the majority of our revenue and cash flow, the uncertainty created by COVID-19 requires us to evaluate all options available to protect the business and its stakeholders,” said Carrie Teffner, Interim Executive Chair of Ascena in a statement.
According to Business-Insider, the New Jersey-based company plans to close at least 1,200 stores but there’s no word yet on if these closures will be only in the U.S or if they’ll affect Ann Taylor locations in Canada.
Right now Ascena has 3,000 stores in the U.S and filing for bankruptcy will allow some stores to continue operations.
Articles You May Also Be Interested In:
The Company That Owns Sporting Goods Store SAIL Has Filed For Bankruptcy Protection
Denim Retailer Lucky Brand Has Filed For Chapter 11 Bankruptcy
The Company That Owns Bootlegger, Cleo & Ricki’s Has Filed For Bankruptcy Protection
Why Bankruptcy Doesn’t Always Mean It’s The End For Brands
GUESS Is Closing 100 Stores Over The Next 18 Months