David Jaffe, chairman and CEO of US women’s wear retailer Ascena Retail Group, has stepped down from his position after leading the company for 27 years.

Jaffe, who will remain on the board of directors, has been succeeded by Gary Muto, currently president and CEO of Ascena Brands.

In addition, Carrie Teffner has been named interim executive chair of the company’s board.

“Leading Ascena over the past twenty-seven years has been a privilege. As the company continues its transformation, the board of directors and I mutually agreed that these decisions are right for the business and its shareholders. I am extremely confident in Ascena’s future under Gary’s leadership and look forward to continuing to serve Ascena as a member of the board,” Jaffe said.

Muto added he is working with Jaffe, Teffner and the board to ensure a smooth leadership transition. “I am eager to lead and work with our Ascena associates, who share my deep commitment to our customers, brands and shareholders. Together we will realise Ascena’s potential as the board and management continue to execute on our previously announced strategic initiatives, including a comprehensive assessment of Ascena’s portfolio brands, operations, assets and continued cost savings.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Tick here to opt out of curated industry news, reports, and event updates from Just Style.

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

During his tenure, Lynch led Ascena’s Change for Growth transformation plan which is on track to deliver a run rate cost savings of US$300m by July 2019.

Susan Anderson, an analyst at B Riley, notes: “We believe this reorganisation demonstrates that everything is on the table as the company’s seeks to turn the business around. Management reiterated that they continue to look at opportunities to maximise shareholder value through their announced initiatives, including an assessment of the brand portfolio, operations and previously announced cost savings plans.”

Ascena refused to be drawn into speculation it is mulling the sale of its Dressbarn unit earlier this month, after booking a second-quarter net loss of $72m in February, compared with a loss of $39m a year earlier, which it blamed on “macro-headwinds” impacting the sector.