Just a week completing the purchase of Charming Shoppes for USD900 million, Ascena Retail Group has announced its plans to close the newly acquired retailer's 600 Fashion Bug stores by early 2013. Charming Shoppes had closed 124 Fashion Bug stores
in 2011, prior to its purchase by Ascena in early May, and had previously announced plans to continue to close certain Fashion Bug locations. As of April 28, 2012, Charming Shoppes had operated a total of 1,800-plus stores under the Lane Bryant, Catherine's and Fashion Bug banners, according to the company’s records.
believe that we have a significant opportunity to fully realize the significant potential of this business,” said David Jaffe, president and CEO of Ascena. “The Lane Bryant and Catherine’s businesses are extremely complementary to our other concepts and we expect them to integrate seamlessly. Though this process will take time, we believe there is an excellent opportunity to streamline the business, capture efficiencies and to share resources.”
These stores will join Ascena’s other subsidiaries such as Maurices and The Dressbarn. According to a press release on the buyout, the acquisition will allow Ascena greater access to the plus-size market and a wider demographic.
Ascena decided to close the Fashion Bug outlets after it conducted a strategic review of the company’s business performance. In 2011, Charming Shoppes closed 124 of the stores nationwide.