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Holiday sales aren’t enough to let all troubled apparel retailers off the hanger. Here’s the latest on 2020’s virtual bankruptcy parade.
Heading out: Ascena Retail Group will sell its core brands—including Ann Taylor, Loft, and Lou & Grey—out of bankruptcy to private equity firm Sycamore Partners for $540 million, pending court approval.
- Ascena filed for bankruptcy in July, hurt by a mixture of ongoing troubles (uninspiring apparel mixes) and 2020 surprises (temporary store closures).
- Sycamore has committed to keeping a “substantial portion” of Ascena’s stores and workers, but it’s unclear exactly who stays and who goes under new management.
Heading in: Arcadia Group, home of Topshop and Miss Selfridge, plans to file for administration as soon as today. Once the paperwork is signed, Arcadia will be the most notable U.K. retail insolvency this year.
Like The Crown’s writers’ room, Arcadia’s known for dancing close to the line. Last year, it avoided administration by cutting 1,000 jobs and shuttering 50 stores. Now, 13,000 jobs and 500 stores hang in jeopardy while the company considers “a number of contingency options.”