Ascena Retail Group’s tween brand, Justice, is being sold to Bluestar Alliance LLC for approximately $90 million. This includes all intellectual property and certain brand assets. As a result, Justice stores will be closed by early 2021, but will remain open for the holiday season, along with its e-commerce platform.

The decision to sell Justice comes after Ascena filed for Chapter 11 bankruptcy in July 2020 due to the economic impact of the Covid-19 pandemic. In September, the company received court approval for its reorganization plan. Despite the sale, Ascena will continue operating its other brands such as Ann Taylor, Loft, Lane Bryant, and Lou & Grey.

Gary Muto, CEO of Ascena, sees the sale of Justice as a significant step in the company’s restructuring process that will benefit stakeholders. He emphasizes the importance of optimizing Ascena’s brand portfolio for long-term success.

The transaction is expected to be completed by the end of November 2020. Bluestar Alliance LLC, the acquiring entity, is a private equity firm and management company with brands like Bebe, Brookstone, Hurley, Catherine Malandrino, Kensie Girl, and Limited Too in its portfolio.

This sale represents a crucial milestone for Ascena as they navigate the challenges of the pandemic. By focusing on their remaining brands and streamlining their portfolio, Ascena hopes to position themselves for future success. Despite the unfortunate closure of Justice stores, the company remains committed to providing meaningful experiences for its customers. With the holiday season approaching, Ascena is preparing for a crucial period in retail sales.

As the fashion industry continues to adjust to a changing landscape, it is expected to see more acquisitions and restructuring. Companies are strategically making moves to ensure long-term viability and profitability. The sale of Justice serves as a prime example of this trend as Ascena optimizes its business operations and aims to emerge stronger from the current economic challenges.

Useful links:
1. Bluestar Alliance LLC
2. Ascena Retail Group brands