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September 04, 2020 2 min read

Fashion chain Ann Taylor's parent company has filed for bankruptcy protection The American company Asana Retail Group has been hit hard by the corona, and in the last quarter it had $ 1.3 billion in debt and $ 439 million in cash balances. The Anne Taylor chain and the other chains it owns will operate almost normally in the bankruptcy process, and it will close stores in Canada, Puerto Rico and Mexico.The global crisis in the fashion industry: Ascena Retail Group, the parent company of the chain Fashion Anne Taylor, filed for bankruptcy protection (Chapter 11). This is after the consequences of the corona plague hit businesses that had previously faltered. US mall operations in the race to buy brands that have collapsed because of the corona: Marks & Spencer lays off hundreds of employees renting in front of the malls: By the corona plague, ”interim chairman Carrie Tapner said in a statement. "As a result, we have taken a strategic step to protect the future of the business for all stakeholders." The company filed for bankruptcy in Virginia. Ann Taylor Store Ann Taylor Store (Photo: shutterstock) As part of its efforts to overcome the difficulties during the Corona period, the company took out sales in Lahalat stores in March and halved the salaries of executives. Although it has since returned wages to their original levels. For the third quarter ended May 2, they were 45% lower than in the same period last year. At the end of the quarter, the company had debts of $ 1.3 billion and $ 439 million in cash balances. According to the company statement, Anne Taylor and other chains owned by Loft and Line Bryant , Will continue to operate during the bankruptcy process, and around 95% of US branches are planned to remain open. However, the company intends to close the stores of the brands in Canada, Puerto Rico and Mexico. As of February the company operated 2,764 stores. Asana has obtained $ 150 million in financing from current lenders and the company estimates that this amount combined with the cash flows as a result of the continued operations and the cash in its possession will be sufficient to cover their needs. Following this move, Anne Taylor joins a string of other well-known retail chains that have declared bankruptcy since the Corona broke out, including Neiman Marcus, Brooks Brothers and JC. penny. Anne Taylor was once considered the leading chain of custom-made clothing for women, however in the 1990s the trend changed in favor of preferring casual clothing and as a result sales were hurt. Asana acquired the Anne Taylor and Loft brands (LOFT) in 2015 in a deal valued at $ 2 billion.

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