Dressbarn's intellectual property gets sold, set for online comeback in the year 2020

In a move that signals the end of an era for the fashion retail industry, Dressbarn, owned by Ascena Retail Group, has announced the final wind-down of all 544 physical stores. This decision comes after years of poor profitability and a struggling brand that has been losing customers, sales, and share.

The new president of Ascena Retail Group, Gary Muto, who took office in May 2021, has been tasked with turning the company around. However, the sale of Dressbarn's intellectual property assets and e-commerce business was unsuccessful, which is seen as a "loss of face" for Ascena.

The closeout sales on all merchandise, including new fall and winter apparel and accessories, will start on Friday and last until Dec. 26. The merchandise will be offered at 20% to 40% off original prices during the closeout sales. Store fixtures and furnishings will also be sold.

Store employees, numbering around 6,800, will be notified as decisions are made about specific closures and provided with transition support. The company's plus-size brands, Lane Bryant and Catherines, may need to be incorporated into other remaining brands due to consumers' increasing rejection of specialty plus-size players in favor of inclusive ones.

The name Dressbarn is perceived as old-fashioned and dull, particularly by younger family shoppers. Ascena neglected the discount brand and missed opportunities to improve it, leading to its failure. Other retailers, including off-price players, value retailers like H&M, and department stores like Kohl's, have taken share from Dressbarn.

Troy Taylor has been appointed as an independent director to The Dress Barn, Inc.'s board. The chain, Dressbarn, has been losing customers due to misinterpretation of customer needs and alienation of customer segments. Ascena's attempts to revive the brand were unsuccessful.

All Dressbarn stores and the e-commerce site are open and doing business as usual, with no changes to return, refund, or gift card policies. The relaunch of the Dressbarn website is scheduled for Jan. 1, at which point previous gift cards, credits, or specials will be invalid.

Ascena still has about 3,000 stores, and there may be further consolidation of offerings and eventual blurring of product lines and product categories, particularly the integration of plus-size fashion into premium fashion. The sale of Dressbarn marks a significant shift in the retail landscape, as more and more retailers struggle to adapt to changing consumer preferences and the rise of online shopping.

Dressbarn's intellectual property gets sold, set for online comeback in the year 2020