Ascena’s much struggling Justice brand has been bought!
Bluestar Alliance, the owner of renowned women’s fashion brand Bebe, has won the bankruptcy auction to buy the Justice brand with a US $ 71 million cash bid that finally values the fashion brand at US $ 90 million.
The cash bid was over US $ 10 million from its initial stalking bid of US $ 60 million.
There’s a hearing today (12 November) in the bankruptcy court to consider the sale overseeing Ascena Group’s bankruptcy case.
The deal is expected to close by the end of this month.
As the Justice brand is all set to be bought by Bluestar, the former has, reportedly, started the process of closing down all its bricks-and-mortar stores, which will end by early next year.
This was confirmed in a statement released by Ascena to media.
Talking about the acquisition, Ralph Gindi, Co-founder, Bluestar, said that the company aims at deepening the connections with its customers, while simultaneously expanding the reach and footprint of the Justice brand.
US Bluestar Alliance also owns Hurley, Brookstone and Limited Too, amongst others.
Back in July, Ascena Group had sold its Catherines business to FullBeauty Brands for US $ 40.8 million.