In the latest round of retailer bankruptcies in the wake of Covid-19, the operator of Ann Taylor and Lane Bryant stores filed for chapter 11 bankruptcy.
With thousands of stores in malls across the country, Mahwah, New Jersey-based Ascend Retail Group Inc., plans to close several Catherine’s and Justice Stores and a number of Ann Taylor, Loft, Lane Bryant and Low & Grey stores due to weak sales made worse by the pandemic.
The company joins a growing list of retailers filing chapter 11 in recent weeks, including some American favorites such as J Crew, J.C. Penny and others, many of whom were forced to shutter stores, furlough employees, and cut orders during the shutdowns, but are now coming back.
Chapter 11, often called a reorganization bankruptcy, is a form of bankruptcy that allows businesses to time to reorganize their affairs, debts, and assets making it a good strategy for businesses affected by the Covid-19 crisis. As the economy begins to recover, Chapter 11 may be a good strategy for your business to open stronger. If you have questions regarding chapter 11 bankruptcy protection, contact the Peoria Chapter 11 business bankruptcy attorney Charles E. Covey for help today at 309-674-8125.