Dressbarn may have begun liquidation sales today at its remaining 544 brick and mortar stores ”“ which include locations in Westchester and the Hudson Valley in New York and Fairfield County in Connecticut ”“ but the company said it”™s not going away.
The Mahwah, New Jersey-based company said it has sold its intellectual property assets and has begun transitioning its e-commerce business to a subsidiary of Retail Ecommerce Ventures LLC.
“We believe the future of Dressbarn is bright and we are excited to grow and expand the online presence for the brand,” said Tai Lopez, co-owner of Retail Ecommerce Ventures.
“With our deep understanding and expertise in marketing and online brands, we are looking forward to taking this iconic brand to the next level,” said Alex Mehr, Retail’s other co-owner.
Dressbarn”™s existing website will remain open for business during the store closing process and will accept gift cards and merchandise credits through Dec. 31 or while merchandise supplies last.
A new website is expected to launch on or about Jan. 1. Gift cards, merchandise credits and other previously issued offers from Dressbarn will not be valid after a the new site launches.
Steven Taylor, Dress Barn”™s CFO, said the planned wind down “has received overwhelming support from our landlord and vendor community.”
Taylor went on to thank the store”™s customers “for their commitment to our brand over the years and hope they take this opportunity to purchase their favorite styles at significant values. We are grateful to our store teams for their unwavering commitment to providing our customers with the same great shopping experience they”™ve come to expect at our stores.”
Dress Barn had its beginnings in Stamford in 1962 when Roslyn Jaffe opened a store that featured clothing for the “working woman.”
In 2009, Dressbarn expanded into the girls clothing market by buying Tween Brands, the owner of the Justice chain.
In 2011, The Dress Barn Inc. reorganized with each of the retail brands becoming subsidiaries of Ascena Retail Group. It acquired Lane Bryant and Catherines in 2012. Three years later, Ascena acquired Ann Inc., the parent company of retail brands Ann Taylor, LOFT and Lou & Grey.
In a filing with the Securities and Exchange Commission, on May 6, 2019, the company and Maurices Inc., a Delaware corporation and wholly owned subsidiary of Ascena, completed the transaction of a stock purchase agreement with Viking Brand Upper Holdings LP, a Cayman Islands exempted limited partnership and an affiliate of OpCapita LLP, providing for the sale by Ascena of Maurices to Viking. Ascena received about $210 million in cash and a 49.6% ownership interest in the operations of Maurices, consisting of interests in Viking preferred and common stock.
On May 20, the company announced the wind down of its Dressbarn brand. Once the last Dressbarn store is closed, the company will have exited its value fashion segment. Its three other segments ”“ premium fashion, plus fashion and kids fashion ”“ will remain.
According to its fourth quarter fiscal report, Ascena had an operating loss of $354 million compared with an operating income of $32 million in the same period a year earlier.
Dressbarn joins a host of other retailers who are closing their brick-and-mortar stores.
