Sycamore Partners to acquire Ann Taylor, Loft from Ascena Retail

Bankrupt Ascena Retail Group has found a buyer for its Ann Taylor, Loft, Lane Bryant and Lou & Grey banners. Sycamore Partners, a private equity firm that owns Belk, Talbot, The Limited and Torrid, among other holdings, has agreed to pay $540 million for a substantial portion of Ascena’s brick-and-mortar stores and its employees.

The deal is subject to certain adjustments, and the assumption of certain liabilities and bankruptcy court approval. The Sycamore-Ascena transaction is expected to be completed by mid-December.

“The commitment Sycamore has made to our people and business is a testament to the long-term growth potential of our brands,” the retail group’s CEO, Gary Muto, said in a recent statement. “At Ascena, we have made significant progress in our financial restructuring process. We have worked diligently to maximize the value of all of our brands, and today’s agreement with Sycamore is the latest example. We are looking forward to the holiday season and beyond in Ann Taylor, Loft, Lane Bryant and Lou & Grey stores and online.”

Stefen Kaluzny, managing director at Sycamore, said the Ann Taylor, Loft and other brands are well-known businesses with loyal customers.

“These brands have significant potential, and we are excited about the opportunity to partner with Ascena’s talented team to continue delivering new and relevant experiences for customers,” he said.