Ann Taylor parent company Ascena has filed for bankruptcy and plans to close some stores

• Ascena Retail Group has filed for Chapter 11 bankruptcy and plans to close some stores.
• Its portfolio brands include Ann Taylor, LOFT, and Lane Bryant.
• Coronavirus-related store closures hurt the business, but the retailer's sales had suffered when mall traffic began to decline even before the pandemic.

Ascena Retail Group, owner of Ann Taylor, LOFT, Lou & Grey, Lane Bryant, Catherines, Cacique, and Justice, has filed for Chapter 11 bankruptcy.

It plans to close an undisclosed number of stores, including "a significant number" of Justice stores and all of its Catherines stores.

It also plans to close some Ann Taylor, Loft, Lou & Grey, and Lane Bryant stores and will exit Puerto Rico, Canada, and Mexico.

The New Jersey-based company currently operates about 2,800 stores in the US, Canada, and Puerto Rico. It has about $1.3 billion in debt.

Ascena temporarily closed all of its stores in March in an effort to slow the spread of the coronavirus, a move that had a drastic impact on sales. In a May update, the company said it was seeing significantly reduced foot traffic in stores that had reopened after local restrictions were lifted.

"The meaningful progress we have made driving sustainable growth, improving our operating margins and strengthening our financial foundation has been severely disrupted by the COVID-19 pandemic. As a result, we took a strategic step forward today to protect the future of the business for all of our stakeholders," Carrie Teffner, interim executive chair of Ascena, said in a press release on Thursday.

The retailer's sales have struggled for years, as its stores are primarily located in malls, which saw declining foot traffic even before the pandemic hit. Bloomberg reported that in September the company was looking to sell Catherines and Lane Bryant — both of which sell plus-size women's apparel — but was unsuccessful in doing so.

At the beginning of 2020, Ascena completed its liquidation of its Dressbarn business, which included more than 650 stores. It also sold off its Maurices brand in March 2019.

"Ann Taylor, LOFT, Lane Bryant, Justice and Lou & Grey have incredibly loyal customers who are at the center of everything we do. These iconic brands have significant long-term potential and we continue to deliver on their mission to provide all women and girls with fashion and inspiration to live confidently every day. This comprehensive restructuring, as well as the actions we are taking to optimize our brand portfolio and store fleet, mark a new start for our company and will allow us to expand our customer-focused strategies across her mobile, online, and store experiences," Ascena CEO Gary Muto said in the press release.

"I am incredibly proud of the entire team for their commitment to serving our customers during what continues to be a challenging period for retail, our communities and our friends and families. We have a clear vision for our future and we will continue delivering meaningful experiences for our customers each and every day. We look forward to our continued partnerships with our valued vendors, landlords and other stakeholders as we emerge from Chapter 11, and this pandemic, as a stronger company."