Ascena Retail Group Inc., parent of the Ann Taylor and Loft retail chains, filed for voluntary chapter 11, with a restructuring agreement supported by more than 68% of its secured term lenders, crushed by the effects of the coronavirus pandemic on its already troubled business, MarketWatch reported. The Mahwah, N.J.-based company said that it expects to reduce debt by about $1 billion in its pre-arranged restructuring, providing increased financial flexibility to become profitable. Ann Taylor, Loft, Lane Bryant and other chains will continue to operate through the restructuring with about 95% of stores open. But the company will reduce its footprint by closing a significant number of Justice stores and certain Ann Taylor, LOFT, Lane Bryant and Lou & Grey stores. Ascena has $150 million in funding from existing lenders and expects that sum combined with cash flow generated by ongoing operations and cash on hand to be sufficient to meet its needs.
