US women’s wear retailer Dressbarn is continuing to wind down its business – with all retail stores due to close by the end of 2019.
Parent Ascena Retail Group, which also operates the Ann Taylor, Loft and Lane Bryant chains, in May said it would shutter the Dressbarn business with the eventual closure of its 650 stores.
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Steven Taylor, chief financial officer of Dressbarn, says the wind down is being implemented in close collaboration with its vendor and supplier network to ensure the receipt of fresh inventory for the remainder of the process.
The company has also retained Hilco Streambank to solicit interest in the intellectual property assets of Dressbarn, which include US and international trademarks, domain names, and other assets.
“A buyer of the Dressbarn brand has the unique opportunity to connect with a devoted customer base and build upon a brand heritage with a well-established presence throughout the US,” notes David Peress, executive vice president of Hilco Streambank.
Store closing or inventory clearance sales are now underway at 53 stores that are slated for closure by the end of August.
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By GlobalDataThe decision to shutter Dressbarn was blamed on the chain “not operating at an acceptable level of profitability in today’s retail environment.”
“Over the past few years, Dressbarn has lost customers, sales and share; it has also been unprofitable. Over recent quarters, those losses have accelerated and have shown no signs of reversing,” Neil Saunders, managing director of GlobalData Retail, said at the time.
“Aside from a few failed efforts to revive the brand, Ascena really never invested in Dressbarn and let it stagnate to the point where it has become completely out of touch with the needs of modern shoppers. Even the name now feels old fashioned and dull. There is a particular issue with the younger family demographic for whom Dressbarn isn’t even on the radar.”
In May, Ascena Retail Group also completed the $300m sale of its Maurices women’s clothing business to London-based private equity firm OpCapita. The company is bringing in former Gap brand president and CEO Jeff Kirwan as the new executive chairman of Maurices.
