Ascena Retail Group Inc. in Mahwah said Tuesday it will sell girls’ clothing brand Justice, including its intellectual property and e-commerce business, to New York fashion business IHL Group for an undisclosed amount of money.
Ascena will conduct an auction, and IHL will serve as the “stalking horse bidder,” where the sale is subject to higher or otherwise better offers and other conditions.
Ascena expects a decision about the remaining Justice retail locations to be made as part of the auction process.
“A sale of the Justice intellectual property, e-commerce business and other assets brings us closer to the completion of our restructuring process. All of our restructuring activities are focused on maximizing value for all of our stakeholders and positioning the Ascena brands for long-term success,” said Chief Executive Officer Gary Muto in a prepared statement.
“With a reduced store footprint and a more focused collection of go-forward brands, we believe that Ascena will emerge from Chapter 11 better able to strategically invest in our future and generate sustainable, profitable growth. Justice remains a brand beloved by tween girls, and we look forward to a competitive auction process,” he said.
The company continues to operate other banners online and in stores, including Ann Taylor, LOFT, Lane Bryant and Lou & Grey after filing for Chapter 11 in July, at which time it announced plans to close its Catherine’s plus-size women’s clothing stores.
A representative did not returned a request for comment.
