Ascena Retail Group, inc. and certain of its subsidiaries announced that it has entered into an asset purchase agreement with Premier Brands Justice LLC to sell the intellectual property, e-commerce business and other assets of its Justice brand.
Ascena intends to conduct an auction pursuant to Section 363 of U.S. Bankruptcy Code. Accordingly, Premier Brands Justice will serve as the “stalking horse bidder” in a court-supervised auction process whereby the APA is subject to higher or otherwise better offers, among other conditions. Ascena expects a decision about the remaining Justice retail locations to be made as part of the auction process.
“A sale of the Justice intellectual property, e-commerce business and other assets brings us closer to the completion of our restructuring process. All of our restructuring activities are focused on maximizing value for all of our stakeholders and positioning the ascena brands for long-term success,” said Gary Muto, Chief Executive Officer.
“With a reduced store footprint and a more focused collection of go-forward brands, we believe that ascena will emerge from Chapter 11 better able to strategically invest in our future and generate sustainable, profitable growth. Justice remains a brand beloved by tween girls, and we look forward to a competitive auction process,” added Mr. Muto.
Mr. Muto continued, “I remain incredibly proud of our entire team and thank them for their dedication and commitment to our customers. We remain steadfast in our commitment to delivering meaningful experiences for her every day as we prepare for the important upcoming holiday season.”
The company continues to operate its Ann Taylor, LOFT, Lane Bryant and Lou & Grey brands through its retail stores and online.