Ascena Retail Group Closing Stores After Filing Bankruptcy

Four Arizona Lane Bryant Stores Closes In Ascena Retail Group Bankruptcy

Our dedicated bankruptcy lawyers understand that clients deserve more attention and hands on time from their bankruptcy attorney. We also realize that many companies are struggling with the current Covid-19 pandemic. Additionally, many people in Maricopa, Pima, and Pinal counties are out of work. Therefore, with so many lives being financially ruined, the bankruptcy attorneys at My Arizona Lawyers are offering free consultations, debt evaluations, and advice.

Ascena Retail Group, the parent company of clothing stores like Lane Bryant, Catherine’s, and Justice, has joined a long list of large companies to file bankruptcy in the wake of the coronavirus pandemic. Brick and mortar retail was already struggling, and months of stay at home restrictions have been the final straw. Ascena has chosen Chapter 11 so that some of its subsidiaries can continue operating. However, a significant amount of Arizona clothing stores will be closing as part of this bankruptcy.

Store Closures In Arizona

There are 688 Lane Bryant locations, Ascena has announced that four Arizona Lane Bryant stores would be closing as part of the bankruptcy. These stores are located at:

Gilbert – 3855 South Gilbert Road
Gilbert – Baseline Road and N. Cooper Road
Mesa – 6555 E. Southern Ave.
Tucson – 5351 S. Calle Santa Cruz

Ascena also owns Catherine’s, a plus size women’s store. Ascena plans to focus attention for this brand on online retail, as opposed to brick and mortar. All of its locations are closing in the bankruptcy, including six in Arizona:

Chandler – 2986 N. Alma School Road
Glendale – 5350 W. Bell Road
Mesa – 5052 S. Power Road
Mesa – 833 N. Dobson Road
Peoria – 9282 W. Northern Ave.
Tucson – 4730 E. Broadway Blvd.

Justice, a girls’ clothing store formerly known as Limited Too, is also owned by Ascena Retail Group. Justice has 826 locations, approximately 600 of which are closing in the bankruptcy. As with Catherine’s, Ascena plans to focus more on the online side of this brand.

The locations closing in Arizona are:

Avondale – 9945 W. McDowell Road
Gilbert – 1073 W. Baseline Road
Glendale – 5350 W. Bell Road
Glendale – 6800 N. 95th Ave.
Mesa – 6555 E. Southern Ave.
Peoria – 25546 N. Lake Pleasant Highway
Phoenix – 21001 W. Tatum Road
Phoenix – 2501 W. Happy Valley Road
Scottsdale – 16451 N. Scottsdale Road
Tempe – 5000 S. Arizona Mills Circle
Tucson – 4500 N. Oracle Road
Tucson – 5870 E. Broadway Road

Ascena also owns Ann Taylor and LOFT, but only one Ann Taylor Factory Store is closing in Arizona. It is located in Glendale at 6800 N. 95th Ave.

Stores that have begun to reopen as stay at home orders are lifted have realized it’s too little too late, and it’s time to file bankruptcy. Ascena Retail Group will be joining Neiman Marcus, JC Penney, J. Crew, True Religion, Lucky Brand, and more on the list of fashion retailers to fall victim to COVID-19. Many of the Ascena locations that are closing are even at the same shopping malls. The pandemic has made it clear that online shopping has officially won the battle over fashion retail.

Arizona’s Unemployment Rate

Arizona saw a spike of unemployment claims in April 2020, with an unemployment rate of approximately 13.4 percent. Conditions improved and the unemployment rate was down to around 9% in May, but has crept back up to 10% for June. The extra $600 weekly federal unemployment benefit is ending soon, as well as Arizona’s eviction moratorium. With at least 20 Ascena-owned stores closing in the bankruptcy, Arizona will hopefully at least be able to keep the unemployment rate static for July.

What Is Chapter 11 Bankruptcy?

Ascena has chosen Chapter 11 Bankruptcy because it allows the company to keep some store locations running and also continue operating online sales. When a company files Chapter 11, its top creditors will form a bankruptcy panel. This will give them control over business decisions like entering new contracts and selling assets, while leaving day to day operations in the hands of ordinary management. Debts will be restructured with the approval of the panel, with the filing company usually securing funding to emerge from the bankruptcy with a well-defined plan to return to profitability. Businesses also have the option of filing Chapter 7, which would discharge the liabilities for all of the company’s debts. However, the business would have to shut down entirely and surrender all of its assets and inventory.

Contact Professional Bankruptcy Lawyers In Chandler

Both Chapter 7 bankruptcy and Chapter 11 are available to businesses as well as individual filers. Individual filers also have the option of Chapter 13 bankruptcy. Ch 13 BK is a debt reorganization payment plan not available to businesses. Our Chandler Bankruptcy Lawyers offer free consultations and can evaluate your financial situation. After free debt evaluation, our attorneys will then advise you as to which chapter of bankruptcy is best for you to file.