Business & Tech
Justice To Close 35 PA Stores Due To Bankruptcy: Report
Justice will close 600 locations after its parent company filed for bankruptcy this week.
PENNSYLVANIA — Justice will is reportedly planning to close 600 locations nationwide after its parent company, Ascena Retail Group, filed for bankruptcy on Thursday.
Ascena Retail Group, which operates Justice as well Ann Taylor, Lane Bryant, LOFT and Catherines, announced the Chapter 11 bankruptcy in a news release.
According to documents obtained by USA Today, the clothing line geared towards girls and young teens will close 35 Pennsylvania stores as part of the bankruptcy process. Stores slated to close include locations in Doylestown, Langhorne, North Wales, King of Prussia, Philadelphia, Warminster, and more.
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Specific closure dates were not announced, but USA today reports store closing sales will last between 30 to 60 days. Patch has reached out to Ascena for further information and will update this story as more details come in.
The company said the impacts of the coronavirus pandemic have negatively impacted "meaningful progress" in getting the company back on track financially.
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The company said the rest of its brand portfolio will stay largely intact, except for the closure of all Catherines stores. In addition to the bankruptcy filing, the company said it has reached an agreement with creditors to reduce debt by approximately $1 billion, and received $150 million in new financing.
Ascena joins a growing list of retailers to file for bankruptcy amid the coronavirus pandemic, including J.Crew, Brooks Brothers, and Neiman Marcus.
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