Sycamore Partners is seeking to purchase Ascena Retail Group’s Ann Taylor, LOFT and Lane Bryant brands as part of the retailer’s chapter 11 process, according to sources. Ascena is in discussions with the private equity firm, an ad hoc group of term lenders represented by Milbank as legal advisor and Greenhill as financial advisor, and various other stakeholders regarding the path forward, the sources said. Earlier today, the debtors
requested that the court adjourn the confirmation
hearing, originally scheduled for today at 10 a.m. ET, by 24 hours in order to finalize terms with consenting stakeholders with whom the debtors have been engaged in discussions for the past several weeks. The confirmation hearing has been adjourned to tomorrow, Tuesday, Nov. 24, at 1 p.m. ET.
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The current chapter 11 plan has been
accepted by both voting classes and
contemplates that the term lenders would receive 55.1% of reorganized equity in exchange for equitizing their holdings, and the term lenders that funded the $150 million new-money
DIP term loan would receive 44.9% of reorganized equity following the sales of
Justice and
Catherines.
Representatives fo Sycamore and Greenhill declined to comment. Ascena and Milbank did not immediately respond to requests for comment.
--Harvard Zhang, Alix Brozman