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Bloomberg
Ascena Retail Group Inc continues to clean out its closets.
The parent of Ann Taylor and Lane Bryant is exploring options for its lower-priced women’s clothing chain, Dressbarn, according to people familiar with the matter. It’s shopping the chain to potential buyers, said the people, who declined to be identified because the process isn’t public.
The company didn’t reply to requests for comment.
Any potential move comes as retailers face challenges that include a costly battle to ward off Amazon.com Inc as it pushes deeper into apparel. Value retailers like Dressbarn are also up against fast-fashion rivals like H&M and Zara, which have won over a growing portion of younger shoppers.
The process is still unfolding, said the people, and no decisions have been made.
If a sale isn’t completed, the chain could face the possibility of shuttering, they said.
In its earnings report on March 14, Ascena CEO David Jaffe said the company’s value-priced unit was “operating at an unacceptable level of profitability.†The chain operated 674 Dressbarn stores as of February 2, according to its most recent quarterly filing. That reflects the closure of 49 Dressbarn locations during the period.