Ascena Retail’s sale of Lane Bryant, Anna Taylor and Loft to close in mid-December

Bankrupted Ascena Retail Group (OTCMKTS: ASNAQ) has agreed to sell the remainder of its retail brands (Lane Bryant, Ann Taylor, Loft, and Lou & Grey) to Premium Apparel LLC, an affiliate of Sycamore Partners LLC for 540 million dollars. The deal is inclusive of termination rights for Ascena including a 54 million dollars termination fee.

The fashion labels stable’s new owner plans to take all of them private, according to a corporate release. The deal closed on November, 26 and is subject to some closing conditions for approval, expected to be complete by mid-December.

Under the deal, Premium Apparel LLC “has committed to retaining a substantial portion of the retail stores and associates affiliated with these brands,” Ascena said in the release. CEO Gary Muto called Sycamore “an experienced and trusted leader in the retail sector.” “The commitment Sycamore has made to our people and business is a testament to the long-term growth potential of our brands,” Muto Ascena’s CEO added.

Second sale for Ascena in less than a month

This is the second deal Ascena has secured to liquidate its piling debt. Earlier in November, the group sold its tween apparel retailer Justice to New York-based Bluestar Alliance LLC, for 90 million dollars. This brand will be also taken private, as announced back then.

“Ann Taylor, Loft, Lane Bryant and Lou & Grey are well-known brands, each with passionate associates and loyal customers,” Stefan Kaluzny, managing director of Sycamore Partners, said in a statement. “These brands have significant potential, and we are excited about the opportunity to partner with Ascena’s talented team to continue delivering new and relevant experiences for customers.”

Kirkland & Ellis LLP, Alvarez and Marsal Holdings, LLC, and Guggenheim Securities, LLC are serving as Ascena’s legal, restructuring and financial advisers in the deal. Davis Polk & Wardwell LLP is adviser to Sycamore Partners.