Women’s’ clothing company Ascena Retail Group along with certain subsidiaries (collectively ascena) has provided updates on its Court-supervised restructuring process.
In July, ascena filed Chapter 11 petitions in the US Bankruptcy Court for the Eastern District of Virginia.
The court gave consent to the company’s Disclosure Statement filed in relation with the solicitation of votes for Plan of Reorganisation, as well as Debtor-in-Possession (DIP) financing on final basis and conversion of DIP to exit financing upon emergence.
Following this approval, the retailer will start solicitation of votes for approval of the Plan, including an amended Restructuring Support Agreement.
Ascena chief executive officer Gary Muto said: “The approval of the Disclosure Statement and our financing commitments combined with the overwhelming support received from our lenders and the early agreement reached with the Unsecured Creditors Committee regarding our proposed debt restructuring represent noteworthy progress toward emerging from Chapter 11 and positioning ascena for long-term success.
“We are in the final stages of implementing our store closure plans across brands, which is expected to reduce our overall footprint to approximately 1,300 locations and are continuing rent discussions with our landlord partners for our go-forward stores.”
Additionally, ascena noted that FullBeauty Brands Operations will acquire Catherines’ intellectual property assets for over $40m.
The acquisition, dependent on court approval and other closing conditions, should conclude in the next few weeks.