Plus-size retailer Ashley Stewart fills for bankruptcy

New Jersey-based womenswear chain Ashley Stewart, which stocks plus-sized clothing,

has just announced it will immediately close 27 underperforming stores as a part of a Chapter 11 bankruptcy restructuring plan. The restructuration responds to a plan to sell the company out.

The company filed for bankruptcy protection Monday in US Bankruptcy Court for the District of New Jersey. In a separate statement, an Ashley Stewart official said potential buyers have signalled their interest in acquiring the company.

According to its bankruptcy filing, Ashley Stewart has assets and liabilities each between 10 million and 50 million dollars. Its top creditors include Federal Express Corp., By Design LLC and Les Vetements Multiwear Inc.

The company's statement said Ashley Stewart suffered a decline in revenue and profitability in 2012 "due to a number of factors that have since been corrected". It says it has brought on new senior management during the past six months and refocused its merchandising and e-commerce efforts.

"We are encouraged to see that several entities from both the financial and apparel industries have expressed interest in Ashley Stewart," Michael Abate, senior vice president of finance, said.

"The plus-size market is poised for increased growth and the Ashley Stewart shopper is in the prized 25-55 age demographic, when women are at the height of their earning power," he continued.