Dress Barn to utilize Escrow Funds for debt servicing
28 Jul '05
1 min read
Nation's leading specialty apparel retailer The Dress Barn Inc announced the Supreme Court of Connecticut's decision to reverse a judgment against the Company in the amount of $32 million has become final.
As a result, the approximately $41 million in the escrow account established in connection with the Company's appeal has been released. The Company is using the proceeds from the escrow account to reduce its outstanding debt. The reversal of the legal accrual for this litigation will be reflected in the Company's financial results for its fiscal fourth quarter ending July 30th.
David R. Jaffe, President and Chief Executive Officer of the Dress Barn Inc commented, "They are pleased with the final judgment in favor of Dress Barn and are utilizing the cash from the escrow account to improve the financial position of the company."
New York based The Dress Barn Inc offers quality career and casual fashion apparel through its dressbarn and maurices brands. As of July 2, 2005, the Company operated 779 dressbarn stores in 45 states and 481 maurices stores in 39 states. It also operates chain of off-price women's apparel stores offering career fashions such as sportswear, dresses, suits, blazers and accessories to working women.
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