June 09, 2017 11:03 PM
maurices' parent company, ascena retail group, has announced it will close hundreds of stores over the next two years.
CEO David Jaffe said 250 stores will be permanently closed by July 2019. Some will be maurices stores, others will come from the seven other brands ascena owns.
An additional 400 stores could close, Jaffe said, if the company can't negotiate reduced rent with landlords.
ascena reported a net loss of more than $1 billion on the corporate books in the third quarter of the 2017 fiscal year.
ascena's eight brands have abour 4,800 stores in the United States, Canada and Puerto Rico. maurices makes up 1,012 of those. maurices stores are in 45 states and five provinces.
There are seven maurices locations in the Northland region: Duluth, Cloquet, Grand Rapids, Mountain Iron, Hayward, Ashland and Ironwood.
According to an ascena press release, "This impairment charge has no impact on the Company's operations, ability to service debt, compliance with financial covenants, or underlying liquidity."
The company has not released which stores will close. Jaffe said ascena "has identified" the 250 locations, but that information has not been released.
A maurices representative said while the news is "disappointing," it will not affect the Duluth-based headquarters. maurices' new building opened spring 2016.
In a conference call Thursday, Jaffe told investors, "Make no mistake, we were very disappointed with our performance for the quarter."
Jaffe said with the current shift toward online shopping, fewer customers are buying clothes in stores.
"The unprecedented store traffic decline in the retail apparel sector are currently masking what we see as an ongoing opportunity to create value through our powerful brand," Jaffe said.
The other brands ascena owns are dressbarn, Justice, Lane Bryant, Catherines, Ann Taylor, LOFT and Lou & Grey.
A representative from maurices declined an on-camera interview Friday, and an ascena spokesperson did not return an email and phone call for comment.
Updated: June 09, 2017 11:03 PM
Created: June 08, 2017 07:31 PM
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