Apparel retailer faces delisting
Ascena Retail Group is in danger of being listed from the Nasdaq Stock Market.
The owner of Ann Taylor, Loft, Lane Bryant and other brands revealed in an SEC filing that it received a notification letter on July 29 from Nasdaq saying that it has failed to meet the requirement for trading on the stock exchange. The notice was prompted by Ascena’s stock selling for under $1 for a period of 30 consecutive business days. The retailer has until Jan. 27, 2020, to regain compliance, which would require its stock to close at a price of more than $1 for 10 consecutive days.
Ascena has been trimming its brand portfolio as it looks to focus on its brands with the greatest long-term growth potential and deliver a leaner operating model. The company is currently winding down its Dressbarn division, with all 650 stores expected to close by the end of 2019.
In May, the retailer completed the sale of its Maurices Inc. division to an affiliate of British private equity firm OpCapita in a transaction valued at approximately $300 million.
Ascena operates nearly 3,500 stores in the United States, Canada and Puerto Rico across all of its brands.