Ascena Retail Group, the enterprise that owns Ann Taylor and Lane Bryant, has filed for Chapter 11 individual bankruptcy defense and designs to shut a important range of retailers, the enterprise stated.

The enterprise has posted working losses of $2.4 billion with only a person year of optimistic working profit considering that the summer time of 2014 but stated the COVID-19 disaster scuttled turnaround attempts.

Ascena, which was as soon as the largest clothing retailer for gals in the nation, has been closing retailers for a long time. It stated it will permanently shut some Ann Taylor, Loft, Lane Bryant, and Lou & Gray retailers and a “significant” range of Justice retailers. It also stated it would permanently shut all retailers throughout all of its brands in Canada, Puerto Rico, and Mexico.

The enterprise borrowed $230 million from existing credit rating lines, but it ended the third quarter in May perhaps with $439 million in income on its equilibrium sheet and personal debt of $1.3 billion, warning there was considerable question about its skill to endure. It shut all retailers on March 18 due to the pandemic, furloughing ninety{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} of its staff and withholding payments to landlords and distributors.

Dozens of shops, which includes Brooks Brothers, JCPenney, and J.Crew have filed for individual bankruptcy as COVID-19 wrought havoc throughout the business, although some organizations have viewed their stock cost make improvements to due to fascination by day traders.

Ascena stated it entered into a restructuring support agreement (RSA) with more than sixty eight{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} of its secured time period loan providers that will lessen its personal debt by somewhere around $1 billion and deliver improved financial overall flexibility. It has also received $150 million in new funds.

“The RSA formalizes our lenders’ frustrating support for a detailed system to deleverage our equilibrium sheet, suitable-dimension our functions, and inject new funds into the organization,” interim govt chair Carrie Teffner stated.

Michael Brochstein/SOPA Photographs/LightRocket by using Getty Photographs

Ann Taylor, Ascena Retail Group, COVID-19, Lane Bryant, retail