Gadfly
Regretting That Ann Taylor Purchase?
For retailer Ascena, acquiring the brand hasn't fixed its problems as much as it's added to them.
People pass the window display of an Ann Taylor women's clothing store in Manhattan.
Photographer: Andrew Burton/Getty ImagesThis article is for subscribers only.
Brick-and-mortar retail is a terrible place to be these days. And still, among the publicly traded fashion chains you'd be hard-pressed to find one worse off than Ascena Retail Group Inc., the home of women's clothing chains Ann Taylor and Loft as well as Dress Barn and others.
Ascena's stock has tumbled about 40 percent in the span of a month, leaving the company valued at $441 million. That's puny in comparison to the $1.32 billion impairment charge it announced last week, alongside third-quarter results that were so far below previous guidance, the company had to warn shareholders a couple of weeks ahead of time that they'd need to brace themselves.