(Reuters) – Ascena Retail Group Inc stated on Monday it might wind down its girls’s price range clothes chain, Dressbarn, shutting about 650 shops in the USA, because it sharpens its concentrate on worthwhile manufacturers.
Ascena’s shares, which have greater than halved this 12 months, have been up about three % in prolonged buying and selling.
The corporate, which additionally homes trend manufacturers Ann Taylor and Gray, stated the transfer would strengthen its general monetary efficiency.
“This determination was tough, however obligatory, because the Dressbarn chain has not been working at a suitable stage of profitability in at this time’s retail setting,” Dressbarn Chief Monetary Officer Steven Taylor stated.
Dressbarn, a family title for over 50 years, has struggled to develop gross sales in a aggressive market the place it battles with on-line retailers like Amazon.com Inc and off-price retailers like TJX Cos Inc.
Reporting by Nivedita Balu in Bengaluru; Modifying by Anil D’Silva