Ann Taylor’s Parent Company Expected to File for Bankruptcy
More Store Closings…😞
According to a recent Bloomberg article, the Ascena Retail Group which operates Ann Taylor & Ann Taylor Factory, LOFT & LOFT Outlet, Lou & Grey, Lane Bryant/Cacique, Catherines, and Justice is discussing a potential bankruptcy filing with lenders as its business has taken a huge financial loss due to the Covid-19 pandemic.
Ascena Retail Group’s 2,350 stores are still shut down as a result of the pandemic and with such a huge reduction in income, the company could file for bankruptcy as soon as July.
This isn’t the first time this company has been hit hard with financial woes. In late 2019, Ascena shutdown all 650 Dressbarn stores due to poor sales performance.
The tween girls brand, Justice, has had the worst sales for the company with a 15% decrease in their second-quarter financial report. The company is likely to focus on cutting losses with Justice completely, just as they did with Dressbarn last year.
Huge discounts are being offered online!
As a result of these impending store shutdowns, several Ascena brands are now offering huge discounts for online shoppers:
- Ann Taylor – offering an extra 50 – 70% off sale items
- LOFT – offering flash sales of at least 50% off
- Lane Bryant – offering up a Buy One, Get One 75% Off sale
- Catherines – offering 40-70% off select apparel and accessories
- Justice – offering summer apparel 30-50% off