Speciality retailer ascena retail group and certain of its subsidiaries has reached an asset purchase agreement (APA) to sell its Justice brand.
The agreement has been entered with New York Domestic Limited-Liability Company Premier Brands Justice.
As part of this agreement, ascena will sell Justice brand’s assets including intellectual property and e-commerce business.
The company is planning to conduct an auction as part of ascena’s ongoing bankruptcy process. Premier Brands Justice will act as the “stalking horse bidder”.
In July, ascena retail group and some of its subsidiaries filed Chapter 11 petitions in the US Bankruptcy Court for the Eastern District of Virginia.
ascena retail group chief executive officer Gary Muto said: “A sale of the Justice intellectual property, e-commerce business and other assets brings us closer to the completion of our restructuring process.
“All of our restructuring activities are focused on maximising value for all of our stakeholders and positioning the ascena brands for long-term success.
“With a reduced store footprint and a more focused collection of go-forward brands, we believe that ascena will emerge from Chapter 11 better able to strategically invest in our future and generate sustainable, profitable growth.
“Justice remains a brand beloved by tween girls, and we look forward to a competitive auction process.”