Last spring it sold its Maurices brand, and later wound down its Dressbarn banner and sold the brand to Retail Ecommerce Ventures, which this year snapped up the Pier 1 and Modell's brands out of Chapter 11 after those retailers liquidated. Speciality retailer ascena retail group and certain of its subsidiaries has reached an asset purchase agreement (APA) to sell its Justice brand. Discover announcements from companies in your industry. WWD By David Moin on October 14, 2020 The Ascena Retail Group Inc., bankrupt since July 23, advanced its restructuring efforts by agreeing to sell its Justice tween girls division to Premier Brands Justice. Ben Unglesbee Ascena Retail Group is selling its tween girls apparel brand. Ascena has been bankrupt since July 23 and has said it will conduct an auction for Justice as required by bankruptcy law. The Ascena Retail Group Inc., bankrupt since July 23, advanced its restructuring efforts by agreeing to sell its Justice tween girls division to the IHL Group, an apparel company and division of USA Apparel Group. In bankruptcy, Ascena has also moved to sell its Catherines business to FullBeauty brands, along with closing more than 1,000 stores across its fleet. By fall 2019, the chain had 826 stores, and sales had declined slightly from the previous year. Ascena to Sell Justice Assets at Auction as Bankruptcy Proceedings Continue. Subscribe to Retail Dive to get the must-read news & insights in your inbox. Ascena Retail Group, the Mahwah-based owner of brands including Ann Taylor and Lane Bryant, has agreed to sell its Justice brand’s intellectual property, e-commerce business and other assets as part of its bankruptcy restructuring, it announced this week. No, it's not L Brands. Ascena’s Ann Taylor, LOFT, Lane Bryant and Lou & Grey brands will remain operational. “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 Gary Muto, CEO, Ascena Retail Group. We are using Section 363 to conduct a court-supervised sale process of our Catherines intellectual property assets and to transition its e-commerce business. Enters Asset Purchase Agreement with Premier Brands Justice to Sell Justice Intellectual Property, E-Commerce Business and Other Assets. The Ascena Retail Group Inc., bankrupt since July 23, advanced its restructuring efforts by agreeing to sell its Justice tween girls division to Premier Brands Justice. Customer Experience disruptor Dixa expands operations in the US to fix broken customer servi... Stylitics Partners with Cordial to Integrate Personalized Outfit Recommendations in Triggere... IPS Logistix receives the 2020 Outstanding Partnership Award from Homeland Security Investig... Industry Dive’s press release service launches Visibility Reports, Shoppers Return to Malls, With an Urge to Spend, PacSun Introduces ‘Gender Free’ Kids Category, Searchandising: 9 best practices for better conversion rates, David's Bridal launches Quinceañera label, Bluestar's winning bid was up more than $10 million from its original. The free newsletter covering the top industry headlines, Hurley, Bebe, Tahari, Brookstone, Limited Too and Nanette Lepore brands, said the Justice brand has "capacity to grow, particularly in categories and distribution. A look at the most expensive Chapter 11 proceedings in retail and the players that have profited from them. That unit operated 661 stores as of May 4. The retailer said the sale of Justice brings it closer to the completion of its restructuring process. ", "Our goal is to create even deeper connections with our consumers and the brand, while expanding Justice's reach and footprint,", By signing up to receive our newsletter, you agree to our, acquire the Justice brand from Ascena Retail Group, Welcome to the lucrative world of retail bankruptcy, How years of investor-friendly finance left retailers vulnerable to crisis, S&P turns positive on Macy's as apparel, economy gain steam, Walmart tries to blot out Yeezy's styled sun logo, Sephora at Kohl's to host blockbuster lineup of over 125 beauty brands, How the pandemic changed retail supply chains, Beyond Peak Delivery: Sustainable Shipping Alternatives, Retail's migration to warehouse automation, 4 Strategies to Delivering Personalization at Scale. By Bryan Wassel. Ralph Gindi, co-founder of Bluestar, said the Justice brand has "capacity to grow, particularly in categories and distribution.". Ascena Retail Group, inc. and certain of its subsidiaries announced that it has entered into an asset purchase agreement with Premier Brands Justice LLC to sell the intellectual property, e-commerce business and other assets of its Justice brand. on Ascena is already in the process of shuttering its Dressbarn chain after failing to find a buyer. Ascena's fire sale of its brands started before it filed for bankruptcy. Ascena Retail, which filed for bankruptcy in July, has shuttered roughly 600 of Justice’s 820 stores. The bankruptcy would allow Ascena Retail Group to sell or close certain chains, including Justice … Ascena acquired the Justice chain in 2009 to expand into the tween market. October 15, 2020 at 11:52 AM EDT. As the Justice brand changes hands, it is winding down all of its physical stores, which is expected to be finished in early 2021, according to a separate press release from Ascena emailed to Retail Dive. Ascena Retail Group has entered into an asset purchase agreement with Premier Brands Justice to sell the intellectual property, ecommerce business and … Ascena acquired the Justice … The bankrupt retailer, whose banners include Ann Taylor, Loft and Lane Bryant, has reached a deal to sell the intellectual property, e-commerce business and other assets of its Justice brand to Premier Brands Justice (an acquisition vehicle of IHL Group). What is Section 363 and why is ascena using it to sell the Catherines e-commerce assets? Ascena announced that it has entered into an asset purchase agreement with Premier Brands Justice LLC to sell the intellectual property, e-commerce business and other assets of its Justice brand. New Jersey-based Ascena (OTCMKTS: ASNAQ) will sell the tween brand's intellectual property and other assets to Justice Brand Holdings LLC, … The asset purchase agreement is subject to higher or otherwise better offers, among other conditions. A hearing is set for Thursday to consider the sale in the federal bankruptcy court overseeing Ascena's Chapter 11 case. "Our goal is to create even deeper connections with our consumers and the brand, while expanding Justice's reach and footprint," Gindi said in the release, adding that his company aims to keep the brand focused on its current demographics and social media following. The company announced that it has entered into … Ascena Retail Group said late Monday that it … “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.”, Ann Taylor parent sells Catherines for $40.8 million, Ascena Retail selling Ann Taylor, Loft and other brands for $540 million. As required by bankruptcy law, Ascena Retail will hold an auction for Justice at which Premier Brands will serve as the “stalking horse bidder.” Premier Brands has agreed to a base cost of $35 million for Justice assets. Section 363 is a part of the U.S. Bankruptcy Code that helps companies complete sales or transactions. ascena reaches asset purchase agreement with Premier Brands Justice. Ascena Retail Group Inc. is selling its brands as it seeks to exit bankruptcy amid the coronavirus pandemic. Topics covered: retail tech, e-commerce, in-store operations, marketing, and more. An Ascena Retail Group Inc. spokesperson did not immediately respond to a request for comment. The parties expect the deal to close before the end of November, according to a press release. Ascena Retail Group to sell its Justice brand. The company said it expects a decision about the remaining Justice locations to be made as part of the auction process. The ailing fashion retailer announced on Tuesday that it has, along with its certain subsidiaries, entered into an asset purchase agreement (APA) with Premier Brands Justice LLC. Ascena had operated approximately 2,800 stores and was hit hard by the pandemic; its restructuring plan is designed to reduce the company’s debt load by $1 billion. Justice is owned by Ascena Retail Group. Could that money have saved their business instead? In bankruptcy, Ascena has also moved to sell its Catherines business to FullBeauty brands, along with closing more than 1,000 stores across its fleet. It's Ascena Retail Group, the parent of Lane Bryant and Justice, both based in Columbus. Public and private companies have transferred billions of dollars to their investors over the years. Twitter. Ascena has already closed about 600 of Justice’s 800 locations. October 14, 2020. Justice is the sole component of Ascena's Kids Fashion segment and is a well-known children's retailer. 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