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Ascena Retail Group announced Monday the closure of its Dressbarn business and its intention to close some 650 women's clothing stores to focus on its most profitable brands.
Ascena, who also owns the Ann Taylor and Loft clothing chains, said the decision was not easy. But the "Dressbarn chain has not operated at a level of acceptable profitability in the retail business," Dressbarn's chief financial officer, Steven Taylor, said in a press release.
The retailer stated that customers will be able to continue shopping in Dressbarn stores and online because closures will not be immediate. It has not defined a specific timetable for the process of business termination. He stated that his suppliers would continue to be paid on "normal terms" and that employees will be informed of updates as decisions are made as to when the sites will be closed.
The announcement comes amidst a wave of store closings across the country this year. More than 6,000 closures have been announced so far in 2019 by companies ranging from Payless ShoeSource to Gymboree to Charlotte Russian, Victoria's Secret and Gap. That's more store closings than all in 2018, when 5,864 closures were announced throughout the year, according to a Coresight Research retail real estate tracker.
Dressbarn, which has been around for more than five decades, is struggling to grow in retail clothing, as more and more women are turning to fashionable retailers such as H & M and Zara , non-price chains like TJ Maxx and Ross Stores, and even Target, for clothing. . Amazon also continues to take a larger share of the online apparel market.
Ascena shares rose more than 2.5% Monday after trading hours, after losing more than 60% in the last 12 months.
WATCH: Retailers Announce Closure of 5,163 Stores in 2019
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