Ascena Retail Group, the owner of the Ann Taylor and Lane Bryant apparel chains, is discussing a potential bankruptcy filing with lenders after its business was thrown into disarray by the Covid-19 pandemic, Bloomberg News reported. The chapter 11 filing, which could come as soon as July, would allow the company to keep some of its brands operating while it seeks to sell others. Ascena is considering selling three of its brands in a court-supervised sale process, including Catherines, while keeping Ann Taylor and Loft as part of the company when it emerges from bankruptcy. Ascena’s lenders are starting confidential talks on a deal that would see their holdings exchanged for a majority stake in the reorganized company. The majority of Ascena’s about 2,800 stores remain closed. All its shops shut in mid-March due to the outbreak and the retailer began to re-open locations in early May as state authorities lifted restrictions. Foot traffic is much lower than normal at the revived stores, the company said in a filing last week.
