25 stores to be shut down before the month ends! Few more days to go in the month of June, and Dressbarn has started shutting its stores kicking off the arduous process of going out of business entirely.
While all 650 Dressbarn stores are slated to close, three more stores will shut down in July following the closure of 25 stores in June.
Ascena Retail Group, the parent company of Dressbarn, announced in May that it is planning to wind down Dressbarn and ultimately shut all its 650 outlets in order to focus on its more profitable brands like Ann Taylor and Loft.
“This decision was difficult, but necessary, as the Dressbarn chain has not been operating at an acceptable level of profitability in today’s retail environment,” said Steven Taylor, Dressbarn Chief Financial Officer.
This came at the time when a number of retail brands are closing their outlets across the country. More than 6,000 closures have been announced so far this year by companies ranging from Payless ShoeSource to Gymboree to Charlotte Russe, Victoria’s Secret and Gap.
According to a retail real estate tracker by Coresight Research, around 5,864 store closures were announced over the entire period of 2018.
Dressbarn has been around for more than five decades. The retail brand struggled to grow in apparel retailing as more women steer toward fast-fashion retailers such as Zara and H&M, off-price chains like TJ Maxx and Ross Stores and also Amazon in online marketplace.
Notably, shares of Ascena are down more than 70 per cent this year.
