Ascena Retail plans to close 1,200 stores, file for bankruptcy, Bloomberg says » 06:1507/0807/08/20
Ascena Retail (ASNA),…
Ascena Retail (ASNA), owner of clothing brands such as Ann Taylor and Lane Bryant, plans to shut at least 1,200 stores as it prepares to file for bankruptcy, Bloomberg's Eliza Ronalds-Hannon and Katherine Doherty report. Ascena may enter bankruptcy proceedings within the week, with a credit arrangement allowing it to shed $700M from its $1.1B debt load, according to the report. Once the process is finalized, proceeds will go to lenders including Eaton Vance (EV), who will then assume ownership of the company, sources with knowledge of the plan say. Reference Link
|Over a week ago|
Largest borrow rate increases among liquid names » 08:4506/1206/12/20
ADAP, GNUS, SAVE, JKS, NE, ASNA, ALT, GME, RIO
Latest data shows the…
Latest data shows the largest indicative borrow rate increases among liquid option names include: Adaptimmune (ADAP) 65.80% +19.89, Genius Brands (GNUS) 278.50% +7.85, Spirit Airlines (SAVE) 14.33% +4.36, JinkoSolar (JKS) 4.21% +3.76, Noble Corp. (NE) 7.91% +2.34, Direxion Oil & Gas 3x Bear ETF (DRIP) 16.45% +1.89, Ascena Retail (ASNA) 32.19% +1.64, Altimmune (ALT) 61.97% +0.89, GameStop (GME) 33.91% +0.81, and Rio Tinto (RIO) 0.87% +0.60.
|Over a month ago|
Ascena Retail said to consider bankruptcy filing, Bloomberg reports 18:5806/0506/05/20
Ascena Retail reported to explore 'balance sheet alternatives,' Retail Dive says » 11:1906/0406/04/20
A Debtwire report that…
A Debtwire report that cites unnamed sources claims that Ascena Retail Group has brought on new advisers to "explore balance sheet alternatives," according to Retail Dive's Ben Unglesbee. Law firm Kirkland & Ellis and Guggenheim Securities are said by Debtwire to be working with Ascena, according to Unglesbee's account of the report. Reference Link
ascena will continue to evaluate all options to preserve ongoing operations » 16:1705/2805/28/20
The company ended Q3 with…
The company ended Q3 with cash and cash equivalents of approximately $439M. The company ended Q3 with outstanding term-loan debt of $1.29B, with interest payments due in Q4 of FY20 of $20.9M and its next quarterly term-loan payment of $22.5M due in November 2020. The company also ended Q3 with $230M of borrowings outstanding under its amended and restated revolving credit agreement, which was utilized to maintain maximum financial flexibility. Borrowings under the company's amended and restated revolving credit agreement have no required repayments until the maturity date, which is currently expected to be in May 2022. Due to the company's increased level of debt and deferred liabilities resulting from the COVID-19 pandemic, despite the aggressive steps it has taken, the company will continue to evaluate all available options to preserve its ongoing operations.
ascena provides update, says Q3 total revenues down 45% » 16:1505/2805/28/20
ascena retail group…
ascena retail group provided a brief update related to its most recently completed quarter that ended on May 2. The company closed all of its stores on March 18. Prior to the closing, store revenue in FY20 represented approximately 60% of total revenues. The company was able to continue its e-commerce business, which experienced a 9% increase in demand during April 2020, compared to April 2019. Total revenues in Q3 were down 45% compared to Q3 of the prior year. In early May, the company began to re-open a select number of stores in states that have lifted business restrictions on non-essential businesses. In markets where shelter-in-place orders have been lifted, and where the company has fully opened stores, the company is experiencing significantly reduced customer traffic relative to the same period last year. Inventory at the end of the quarter was down approximately 20% compared the same period in the prior year. This reflects a significant increase in inventory reserves, reflecting the uncertainty of consumer sentiment once stores fully re-open. Gross inventory, before reserves, was up 5% compared to the same period in the prior year.
Ascena Retail adopts tax benefits preservation plan » 16:2105/2605/26/20
ascena retail grou…
ascena retail grou announced that its Board of Directors adopted a tax benefits preservation plan. Under the tax benefits preservation plan, the Company will issue a dividend of one right for each share of its common stock held by stockholders of record as of the close of business on June 5, 2020. The plan is designed to protect stockholder value by mitigating the likelihood of an "ownership change" that would result in significant limitations on the Company's ability to use its net operating losses or other tax attributes to offset future income. The plan is similar to plans adopted by other public companies with significant net operating loss carryforwards. The tax benefits preservation plan provides, subject to certain exceptions, that if any person or group acquires 4.9% or more of the Company's outstanding common stock, there would be a triggering event potentially resulting in significant dilution in the voting power and economic ownership of that person or group. Existing stockholders who hold 4.9% or more of the Company's outstanding common stock as of the date of the plan will trigger a dilutive event only if they acquire an additional 1% of the outstanding shares of the Company's common stock.
|Over a quarter ago|
Ascena Retail implements furlough program across business » 16:1903/3003/30/20
ascena retail group,…
ascena retail group, announced additional measures being taken to mitigate the financial impact of COVID-19. Gary Muto, Chief Executive Officer of ascena commented, "We have been continuously monitoring the impact of COVID-19 and are putting our associates, customers and community at the center of everything that we do. In light of the current environment, we have extended the temporary store closures and will continue to reassess as information becomes available. We are taking immediate steps to reduce costs and preserve cash so that we are able to resume operations when we emerge from this crisis." Due to the uncertain environment, the Company made the extremely difficult decision to ncluding all store associates and close to half of its corporate associates. During this time, furloughed associates who are participating in any of the Company's medical benefit plans will keep those benefits. Mr. Muto continued, "Impacting our associates is one of the most difficult decisions we have ever had to make as an organization. I want to thank our team members for their unwavering commitment to our customers and brands." In addition to the furlough program, the Company announced temporary reductions in the base salaries of all corporate associates above a certain salary beginning this week. The base salaries of Carrie W. Teffner, Interim Executive Chair and Gary Muto, Chief Executive Officer, will each be reduced by 50%. Reductions for other executives and corporate associates above a certain salary will range from 10% to 45% depending on base pay.
Fly Intel: After Hours Movers » 19:0303/1703/17/20
FDX, CNK, MDB, CRON, ASNA, VECO, LYFT, TGT
UP AFTER EARNINGS: FedEx…
UP AFTER EARNINGS: FedEx (FDX) up 1.1%. ALSO HIGHER: Cinemark (CNK) up 3.6% after announcing closure of all U.S. theaters. DOWN AFTER EARNINGS: MongoDB (MDB) down 9.2%. ALSO LOWER: Cronos (CRON) down 14.3% after announcing plans to restate certain 2019 financial statements... Ascena (ASNA) down 10.1% after pulling Q3 guidance, closing all retail stores... Veeco (VECO) down 2.7% after cutting Q1 guidance... Lyft (LYFT) down 1.7% after pausing shared rides across all markets... Target (TGT) down 1.1% after reducing hours nationwide. Movers as of 18:30ET.
Ascena Retail withdraws Q3 guidance » 16:5003/1703/17/20
Given the uncertain…
Given the uncertain impact of COVID-19, Ascena is withdrawing its third quarter guidance issued in its second quarter earnings release filed on Form 8-K on March 9, 2020. The company is not providing updated guidance at this time.