Ascena Retail Group has received bankruptcy court approval to sell its Ann Taylor, Loft, Lane Bryant and other brands to Sycamore Partners.
As previously reported, the private equity firm will acquire the Ascena businesses for $540 million on a cash-free and debt-free basis, subject to certain adjustments, and the assumption of certain liabilities. The deal is expected to close in the coming weeks.
Ascena, which filed for bankruptcy in July, said that Sycamore has committed to “retaining a substantial portion of the retail stores and associates affiliated with these brands.” As of August 29, Ascena operated 1,500 stores throughout the U.S. in addition to e-commerce sites. The deal is expected to keep about 900 stores open.
The sale will expand Sycamore's retail portfolio, which includes Belk, Talbots, The Limited, Hot Topic and Torrid.