Bluestar Alliance, whose brand portfolio includes Hurley, bebe, Tahari, Brookstone, Limited Too and others, has become the new stalking horse bidder for Ascena Retail’s tween brand Justice. Bluestar bid is valued in excess of $60 million, and consists of $44 million in cash. It includes the intellectual property and related assets as well as assumption of certain liabilities.
"We offered a bid that we believe speaks to the strong existing connection consumers have to the Justice brand and its future potential," stated Joey Gabbay, CEO of Bluestar Alliance. "We look forward to maximizing the business with both current and new partners, as well as growing the brand to enhance and expand its current footprint."
Ascena Retail, which filed for bankruptcyin July, has shuttered roughly 600 of Justice’s 820 stores. It recently filed for 85 additional closures, according to court documents.
Bluestar said it believes that the Justice brand will fit perfectly within its existing brand portfolio.
"We have had significant success in the teen, tween & children's markets, and believe the Justice brand will benefit from our existing relationships and sizeable market-share," said COO Ralph Gindi.