Dressbarn parent company Ascena Retail Group (NASDAQ:ASNA) announced that it is shuttering the doors of hundreds of its subsidiary’s stores.
Here are seven things to know about the Mahwah, New Jersey-based company’s move:
- Retail operations are winding down for the business, which will lead to it shuttering the doors of its 650 stores.
- Dressbarn has been around since 1962, founded by Elliot and Roslyn Jaffe, who created the business to help women who were entering the workforce and seeking fashion if they were on a budget.
- It started as a single store in Stamford, Connecticut that eventually became a nationwide chain.
- “For more than 50 years, Dressbarn has served women’s fashion needs, and we thank all of our dedicated associates for their commitment to Dressbarn and our valued customers,” Steven Taylor, CFO of Dressbarn, said in a statement.
- Taylor also mentioned that it was a difficult, yet necessary decision for the business as the company has not been operating a level of profitability that is acceptable in today’s retail environment.
- The company has roughly 6,800 associated and it will work to help employees through the transition and maintain existing relationships with vendors, suppliers, as well as stakeholders, Taylor added.
- Dressbarn will reveal plans for when it will close individual locations during the wind-down process, which will include store closing sales.
ASNA stock is down about 6.4% on Wednesday following the news.