Justice Brand Holdings LLC, a subsidiary of Bluestar Alliance LLC, has won the auction to acquire the intellectual property of the Justice brand from Ascena Retail Group Inc., the Mahwah-based retail company announced Wednesday.
Justice Brand Holdings will now own the intellectual property and assets of the tween girl fashion retailer as part of Ascena’s bankruptcy filing. Brand management company Bluestar’s entity will also assume certain liabilities, with a total consideration of $90 million.
“The conclusion of the sale process for our Justice brand is a significant step forward in our efforts to complete our restructuring process and maximize value for all our stakeholders,” Ascena CEO Gary Muto said in a prepared statement. “The optimization of our portfolio better positions Ascena for long-term success and supports our vision for the future.
“As we seamlessly transition ownership of Justice over the coming weeks, we remain committed to delivering meaningful experiences for our customers every day. I thank our entire team for their continued focus as we prepare for the important holiday season.”
Justice stores will remain open through the holiday season, with a winddown of locations expected to conclude by early 2021.
The transaction is subject to approval by U.S. Bankruptcy Court and other customary conditions and approvals. It is expected to close by the end of November.
Ascena continues to own and operate brands including Ann Taylor, Lane Bryant and others.