Ascena Retail Group Inc. has sold the intellectual property and certain other assets and liabilities of the Justice tween division to an entity formed by Bluestar Alliance LLC, a brand management company.
The purchase price was about $90 million.
The deal was made through “a comprehensive sale process and a competitive auction” conducted in bankruptcy court, Ascena said Wednesday morning.
Gary Muto, chief executive officer of Ascena, commented, “The conclusion of the sale process for our Justice brand is a significant step forward in our efforts to complete our restructuring process and maximize value for all our stakeholders.
“The optimization of our portfolio better positions Ascena for long-term success and supports our vision for the future. As we seamlessly transition ownership of Justice over the coming weeks, we remain committed to delivering meaningful experiences for our customers every day.”
Justice stores will remain open through the holiday season. A wind down of all Justice locations is expected to conclude by early 2021. The Justice web site will continue to operate through the holidays.
Justice Brand Holdings LLC, the entity formed by Bluestar Alliance for the Justice acquisition, outbid Premier Brands Justice, an acquisition vehicle for IHL, a men’s, women’s and children’s apparel manufacturing and wholesale company.
Ascena has been bankrupt since July 23 and has already closed at least 600 of Justice’s 800 locations. Ascena also operates Ann Taylor, Loft, Lou & Grey and Lane Bryant.
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