US women’s clothing retailer Ascena Retail Group recently announced entering into a restructuring support agreement (RSA) with over 68 per cent of its secured term lenders and filed voluntary Chapter 11 petitions to implement a financial restructuring plan. This is strategic step to protect the business for all stakeholders, the company said in a statement.
The RSA contemplates agreed-upon terms for a pre-arranged financial restructuring plan that is expected to significantly reduce the group’s debt by nearly $1 billion and provide increased financial flexibility to enable the company to continue its focus on generating profitable growth and driving value for customers and stakeholders.US women's clothing retailer Ascena Retail Group recently announced entering into a restructuring support agreement (RSA) with over 68 per cent of its secured term lenders and filed voluntary Chapter 11 petitions to implement a financial restructuring plan. This is strategic step to protect the business for all stakeholders, the company said in a statement.#
Throughout the restructuring process, the company’s brands, including Ann Taylor, LOFT, Lane Bryant, Justice and Lou & Grey, will continue to provide customers with compelling fashion assortments and an exceptional shopping experience.
Currently, the company is operating with approximately 95 per cent of its store base reopened and continues to serve customers in those stores and through its e-commerce brand websites.
In addition, Ascena has entered into an asset purchase agreement with City Chic Collective Limited to sell the Catherines intellectual property assets and to transition its e-commerce business to a subsidiary of City Chic. The Company intends to conduct the sale process pursuant to Section 363 of the Bankruptcy Code.
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