PRESS RELEASE: MAHWAH, N.J.–(BUSINESS WIRE)–Ascena Retail Group, Inc. (NASDAQ:ASNA) today announced that as part of a strategic review of its Justice business, it has decided to close its Brothers brand. Operations are expected to be fully wound down by the end of the company’s fiscal year.
“We are mindful of the impact this decision has on our customers and associates. At this point in its evolution, it is appropriate for Justice to focus on its core girls business, including refinement of its merchandise assortment and overall marketing strategy.”
Ascena CEO David Jaffe commented, “We are mindful of the impact this decision has on our customers and associates. At this point in its evolution, it is appropriate for Justice to focus on its core girls business, including refinement of its merchandise assortment and overall marketing strategy.”
Wind-down costs associated with the decision to close Brothers are not expected to be material to the company’s financials. For fiscal 2014, Brothers represented less than 1% of the total Ascena revenue base, and the Brothers brand has been operating at a loss since its inception.