After all the talk about Ascena Retail Group, Inc. planning to file for protection under Chapter11, finally the retailer filed for bankruptcy yesterday (23 July).
And immediately there have been talks about Authentic Brands Group (ABG) and Sycamore Partners speeding up efforts to acquire the bankrupt retailer.
Though nothing has been made public as yet, there are reports that both ABG and Sycamore Partners will be joining hands with Simon Property Group and Brookfield Property Partners to acquire some, if not all, assets of Ascena.
The American retailer owns Ann Taylor and Lane Bryant, among several others.
After court filings, the insolvent retailer said its revamping plan will allow it to bring down its debt by US $ 1 billion.
Besides, Ascena also distinctly stated that it has plans to close 1,200 of its 2,800 stores – that’s almost 40,000 job cuts.
As per the existing agreement, lenders will own Ascena following Chapter 11 filing, but plans may change based on competing future bids for the company as a whole, or some of its brands. This would also require approval from court.
Also Read: Ascena Group seeks US $ 150 million new loan
Lately, ABG and Sycamore have been putting efforts to save many retailers going bankrupt –one of the most talked about being ABG teaming up with Simon and Brookfield to acquire Forever 21.
It will be interesting to see the developments over the course of next few days.
We will keep you posted!