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Bloomberg
Ascena Retail Group Inc, the owner of Ann Taylor and Dressbarn, soared after announcing it will sell a majority interest in its Maurices Inc chain to a private equity firm. The shares jumped the most in three months on the news.
An affiliate of OpCapita LLP will buy a stake in the women’s clothing retailer in a deal valued at about $300 million, Ascena said in a statement.
The deal shouldn’t come as a complete surprise: Earlier this month, the company said its value unit, which includes Maurices and Dressbarn, was operating at an “unacceptable level of profitability.†Maurices CEO George Goldfarb will continue to run the chain, while Jeff Kirwan becomes executive chairman, OpCapita said.
Kirwan, who led the struggling Gap brand for three years before departing last year, failed to return it to “operational excellence and accelerated profit growth,†Gap Inc said at the time. As the retail industry gets more competitive, Ascena has been taking steps to address its cost structure and refocus on brands that can
deliver growth.