Ascena Retail Group Inc. will sell its Ann Taylor, LOFT, Lane Bryant and Lou & Grey brands to private equity firm Sycamore Partners for $540 million, per an asset purchase agreement announced on Nov. 26.
The retailer signed the APA with Sycamore affiliate Premium Apparel LLC for a cash-free and debt-free purchase, subject to certain adjustments and the assumption of certain liabilities.
Under the APA, Premium Apparel committed to retaining “a substantial portion of the retail stores and associates affiliated with these brands,” according to the announcement.
“The commitment Sycamore has made to our people and business is a testament to the long-term growth potential of our brands,” said Ascena CEO Gary Muto in a prepared statement, noting that Ascena has made “significant progress in our financial restructuring process.”
“Ann Taylor, LOFT, Lane Bryant and Lou & Grey are well-known brands, each with passionate associates and loyal customers,” said Stefan Kaluzny, managing director of Sycamore Partners in a prepared statement. “These brands have significant potential, and we are excited about the opportunity to partner with Ascena’s talented team to continue delivering new and relevant experiences for customers.”
As previously disclosed, FullBeauty Brands Operations LLC has completed its acquisition of ex-Ascena-brand Catherines’ intellectual property assets and e-commerce business; and Justice Brand Holdings LLC, an entity formed by Bluestar Alliance LLC, has completed its acquisition of the intellectual property of ex-Ascena-brand Justice.
This transaction is expected close by mid-December.
