ASCENA RETAIL GROUP, INC. (NASDAQ:ASNA) Files An 8-K Costs Associated with Exit or Disposal Activities

On May 23, 2019, Ascena Retail Group, Inc., a Delaware corporation (“ascena” or the \”Company\”), filed a Current Report on Form 8-K (the \”Original 8-K\”) announcing that its board of directors approved the wind down of the operations of its Dressbarn brand (“DBI”), including the closure of all of its stores (the “Wind Down”). At such time, ascena was unable to make a good faith determination of an estimate of the amount or range of amounts expected to be incurred in connection with the Wind Down, both with respect to each major type of cost associated therewith and with respect to the total cost. The Company is filing this Current Report on Form 8-K/A to amend the Original 8-K to update the disclosures made therein under Item 2.05.

In connection with the Wind Down, all DBI stores were closed as of December 31, 2019, following which negotiations with certain landlords regarding remaining lease obligations continued. As of the date of this Current Report on Form 8-K/A, those negotiations are substantially complete and termination agreements are in the process of being finalized.

In connection with the Wind Down, the Company expects to incur total charges of approximately $60 million, of which approximately $55 million were recorded from the date of announcement through the three months ended November 2, 2019, and approximately $5 million are expected to be reflected in the three months ended February 1, 2020. The total charges primarily reflect approximately $20 million related to the termination and closure of the DBI stores, approximately $25 million of severance costs, a non-cash impairment charge of approximately $20 million to write-down DBI\’s headquarters building to its fair market value, and approximately $15 million of professional fees. These charges were offset by approximately $15 million related to the non-cash settlement of lease-related assets and liabilities, and approximately $5 million received from the sale of the DBI intellectual property.

Item 8.01 Other Events.

On February 19, 2020, ascena issued a press release announcing the completion of the Wind Down. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Cautionary Language Concerning Forward-Looking Statements.

Certain information in this Current Report on Form 8-K/A contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. ascena’s Securities and Exchange Commission (“SEC”) filings identify many such risks and uncertainties. The forward-looking information in this Current Report on Form 8-K/A could be affected by many factors, including, without limitation, disruptions in operations, supplier relationships and employee relations given the decision to the Wind Down, unanticipated developments related to the Wind Down, changes in financial markets, interest rates and foreign currency exchange rates, the ability to achieve anticipated cost reductions, the ability to achieve a successful outcome for its portfolio brands and to otherwise achieve its business strategies, and those additional risks and factors discussed in reports filed with the SEC by ascena from time to time, including those discussed under the heading “Risk Factors” in its most recently filed Annual Report on Form 10-K. ascena undertakes no duty and has no obligation to update any forward-looking statements contained herein.

Ascena Retail Group, Inc. Exhibit
EX-99.1 2 draftdbwinddownrelease2_19.htm EXHIBIT 99.1 Exhibit ascena retail group Announces Dressbarn Wind Down Successfully CompletedConcludes Significant Step in ascena’s Ongoing TransformationMAHWAH,…
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About ASCENA RETAIL GROUP, INC. (NASDAQ:ASNA)

Ascena Retail Group, Inc. is a specialty retailer of apparel for women and tween girls. The Company operates through six segments: ANN, Justice, Lane Bryant, maurices, dressbarn and Catherines. The ANN segment offers feminine classics and fashion choices, sold primarily under the Ann Taylor and LOFT brands. The Justice segment offers apparel to girls who are aged 6 to 12. The Lane Bryant segment offers apparel to female customers in plus-sizes 14-28. The maurices segment offers women’s casual clothing, career wear, dressy apparel, active wear and accessories. The dressbarn segment consists of the specialty retail, outlet and e-commerce operations of the dressbarn brand. The Catherines segment offers classic apparel and accessories to female customers for wear-to-work and casual lifestyles. As of July 30, 2016, the Company operated approximately 4,900 stores in 49 United States’ states, the District of Columbia, Canada and Puerto Rico.