Plus   Neg

Dressbarn Starts Store-closing Sales


Women's clothing chain Dress Barn Inc. said it started store-closing or inventory clearance event sales at the 53 stores it plans to close by the end of August.

"We encourage customers to take advantage of deeper discounts, shop early for the best selection, and use any outstanding gift cards," Steven Taylor, Chief Financial Officer of Dressbarn said in a statement.

The company expects to close all its stories by end of 2019. It also released a list of the nine stores closing in July and the 53 stores closing in August. Dressbarn has hired Gordon Brothers Retail Partners to help with the store closures.

In May, Dressbarn had said it would wind down all its operations and close all 650 of its stores across the U.S. The women's fashion store, founded in 1962, employs about 6,400 people.

These actions are in line with its parent company Ascena Retail Group's strategy to focus more on its most profitable brands.

Ascena Retail is a specialty retailer that owns brands like Ann Taylor, LOFT, Lou & Grey, Lane Bryant, Catherines, Cacique and Justice.

There was speculation that Dressbarn would file for bankruptcy as a standalone unit if its landlords failed to agree to relieve the struggling chain of its lease obligations.

"We have received overwhelming landlord support for our plan, which will allow us to implement our wind down in a manner that provides the best recovery for our landlords. Further, we are current, and expect to remain so, with our vendors and suppliers," Taylor said.

Dressbarn has retained Hilco Streambank to look for buyers of the company's intellectual property assets, including its U.S. and international trademarks, domain names, and other assets.

Traditional brick-and-mortar retailers are continuing to struggle amid stiff competition from online retailers and the change in shopping habits of customers.

In May, Topshop Topman had announced its plans to close all elven of its U.S. stores as its London-based parent company Arcadia Group sought to restructure after filing for bankruptcy protection.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Whole Foods Market stores have recalled Decorated Red Apple Cookies as they may contain undeclared egg. People who have an allergy or severe sensitivity to these allergens run the risk of serious or life-threatening allergic reaction if they consume these products. The cookies were sold by the... Norwex has announced voluntary recall of about 58,000 rubber brooms due to laceration hazard. According to the company, handles of the recalled brooms can break in half, exposing a metal inner rim, posing a laceration hazard to the user. The recall involves extendable indoor/outdoor white rubber... Amazon.com Inc. has expanded its AmazonFresh grocery delivery service to three new cities. Beginning today, Amazon Prime members in Houston, Minneapolis and Phoenix can shop thousands of products, ranging from meat and seafood to fresh produce and everyday essentials. The groceries will be delivered to their homes in two hours or less, with options for one-hour and two-hour delivery.
Follow RTT