Bankruptcy protection would allow the company to avoid a permanent shutdown, cut its borrowings and close weak stores to minimise costs. The situation remains fluid and plans could change, with Ascena still seeking alternative forms of financing, according to the people.
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.
Even before the pandemic, Ascena was experiencing financial troubles of its own making, with sales sliding and borrowings that ballooned to more than US$1 billion. Some of its debt is quoted at less than a quarter of its face value.
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Source: BusinessTimes - 🏆 15. / 51 Read more »