Mahwah-based Ascena will sell the Ann Taylor, LOFT, Lane Bryant and Lou & Grey units to Premium Apparel LLC, a Sycamore affiliate, for $540 million, it said in a news release.
Premier has committed to retaining a substantial portion of the brands’ retail stores and associates, Ascena said.
“We are pleased to announce an agreement with Sycamore Partners, an experienced and trusted leader in the retail sector,” Ascena CEO Gary Muto said in a prepared statement. “The commitment Sycamore has made to our people and business is a testament to the long-term growth potential of our brands.”
The transaction is expected to be completed by mid-December, pending customary approvals and conditions. It follows on Ascena’s sales of the Catherines and Justice brands.
“At Ascena, we have made significant progress in our financial restructuring process,” Muto said. “We have worked diligently to maximize the value of all our brands, and today’s agreement with Sycamore is the latest example.”
Kirkland & Ellis LLP is Ascena’s legal counsel, while Alvarez and Marsal Holdings LLC is serving as restructuring adviser and Guggenheim Securities LLC is serving as financial adviser. Davis Polk & Wardwell LLP is serving as Sycamore’s legal counsel.