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Premium Apparel to acquire Ascena Retail Group brands

Ann Taylor

Ascena Retail Group, Inc. and certain of its subsidiaries announced that it has entered into an asset purchase agreement with Premium Apparel LLC, an affiliate of Sycamore Partners, a private equity firm specializing in consumer, retail and distribution investments, to sell Ascena’s Ann Taylor, LOFT, Lane Bryant and Lou & Grey brands.

SEE ALSO : Ascena Retail Group to sell its Justice brand

Premium Apparel will acquire the brand assets for a purchase price of $540 million, on a cash-free and debt-free basis, subject to certain adjustments, and the assumption of certain liabilities. Under the APA, Premium Apparel has committed to retaining a substantial portion of the retail stores and associates affiliated with these brands.

“We are pleased to announce an agreement with Sycamore Partners, an experienced and trusted leader in the retail sector. The commitment Sycamore has made to our people and business is a testament to the long-term growth potential of our brands,” said Gary Muto, Chief Executive Officer.

“At Ascena, we have made significant progressin our financial restructuring process. We have worked diligently to maximize  the value of all of our brands, and today’s agreement with Sycamore is the latest example,” added Mr. Muto.

Mr. Muto continued, “I want to thank our associates, as well as our customers and vendors, for their support of Ascena and our brands. We are looking forward to the holiday season and beyond in Ann Taylor, LOFT, Lane Bryant and Lou & Grey stores and online. As our customers’ needs continue to evolve, our teams remain focused on delivering great fashion and memorable experiences, however our customer chooses to shop.”

“Ann Taylor, LOFT, Lane Bryant and Lou & Grey are well-known brands, each with passionate associates and loyal customers,” said Stefan Kaluzny, Managing Director of Sycamore Partners.

“These brands have significant potential, and we are excited about the opportunity to partner with Ascena’s talented team to continue delivering new and relevant experiences for customers,” added Stefan.

SEE ALSO : Unilever acquires SmartyPants Vitamins

The transaction is expected to be completed by mid-December. As previously disclosed, FullBeauty Brands Operations, LLC has completed its acquisition of Catherines’ intellectual property assets and e-commerce business, and Justice Brand Holdings LLC, an entity formed by Bluestar Alliance LLC, has completed its acquisition of the intellectual property of Justice.