As per reports, Premium Apparel LLC, an affiliate of New York City-based private equity firm Sycamore Partners, has inked an agreement with Ascena Retail Group to purchase its brands for $540 million. The apparel and footwear brands that Premium Apparel has committed to purchase include Ann Taylor, LOFT, Lane Bryant and Lou & Grey. The deal is expected to close by mid-December. According to this deal, Premium Apparel will acquire the brands on a cash-free and debt-free basis.
An operator of 1,500 stores across the US, Ascena Retail Group filed for Chapter 11 bankruptcy in July. In September, the company agreed to sell its plus-size chain Catherines to FullBeauty Brands for $40.8 million. The company has also ceased operating its Justice and Dressbarn brands over the last 18 months.
Kirkland & Ellis LLP is serving as legal counsel to the Ascena Retail Group, and Alvarez and Marsal Holdings LLC is serving as restructuring advisor. Guggenheim Securities LLC is serving as Ascena’s financial advisor. Davis Polk & Wardwell LLP is serving as legal counsel to Sycamore Partners and Premium Apparel.