The Ascena Retail Group has announced some key milestones achieved in its court-supervised restructuring process.
The US Bankruptcy Court has given green signal to Ascena’s Disclosure Statement filed in connection with solicitation of votes on company’s Plan of Reorganisation.
The court approval means Ascena will start solicitation of votes from its creditors to approve the plan.
While the votes from creditors are due by 13 October, confirmation hearing of the plan is scheduled for 23 October.
The plan also includes an amended Restructured Support Agreement, which is expected to bring down Ascena’s debt by around US $ 1 billion. It already has support of 95 per cent of its secured term lenders.
Notably, Ascena also received court approval for debtor-in-possession (DIP) financing.
Upon final approval, along with DIP approval, Ascena will emerge from Chapter 11 with a stronger balance sheet and better operating structure.
As a part of its restructuring efforts, the womenswear retailer has moved to shut down 23 more stores, adding to its already closed 1,000+ stores.
Reportedly, it is also negotiating rent discussion with landlord partners for their go-forward stores. Also, as a part of its ongoing corporate expense reduction plan, Ascena has exited and consolidated its corporate offices.
It is worth noting here that only last week FullBeauty had won the auction to win Ascena-owned Catherine’s digital business for over US $ 40 billion.
Also Read: FullBeauty to acquire Catherines for nearly US $ 41 million
Ascena Group, which owns reputed brands like Ann Taylor and Lane Bryant, had filed for bankruptcy on 23 July 2020.
