Retailer Dressbarn is giving its landlords a barn-burner of an ultimatum in a bid to stave off bankruptcy, The New York Post reported. After announcing plans to close its 650 stores in May, the 57-year-old fashion chain has been telling its landlords that it will tie up their properties in bankruptcy court unless they agree to relieve Dressbarn of its lease obligations. Dressbarn — a unit of Ascena Retail Group, which also operates Ann Taylor, Loft, Lane Bryant and Catherines — is delivering the message as part of a wider plan to shutter all of its stores by the end of the year without having to file for chapter 11. In order to convince landlords to go along with the plan, Dressbarn has been offering to keep its clothing stores open until August and pay rent through October — or operate stores through December and pay rent for the rest of the year. If 90 percent of them agree to its terms, it can avoid bankruptcy, Dressbarn has said. Landlords, who are keenly aware that they have the right to sue Dressbarn for breaking the terms of their leases, are weighing their options. Meanwhile, it’s not clear if Dressbarn can even file bankruptcy protection as a standalone unit.
