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DR

Dress Barn

retail
PE-OWNED

Women's clothing retailer specializing in professional and casual wear.

PE-OWNED

Acquired by Advent International2010-07-15

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What Made It Great

Value-oriented women's apparel chain serving working women

What PE Will Likely Do

Dress Barn will likely announce store closures and staff reductions within the first 6-12 months of the acquisition to cut costs

HIGH LIKELIHOODBased on: Advent International's track record of cost-cutting and debt loading in retail acquisitions, with a 50% bankruptcy rate

The quality and selection of women's professional and casual clothing at Dress Barn stores will likely decline over the next 12-24 months as the company reduces inventory levels and defers maintenance on stores

HIGH LIKELIHOODBased on: The industry playbook for private equity firms in retail, which shows a high frequency of store closures, inventory reductions, and deferred maintenance

Dress Barn may eventually file for bankruptcy protection or be sold off in a fire sale within 4-5 years as the cost-cutting measures fail to stabilize the business

HIGH LIKELIHOODBased on: The history of Dress Barn's previous private equity acquisition, which resulted in bankruptcy

Expected Timeline

0-6 monthsCompleted

0 to 6 months months

Dress Barn will likely announce plans for a 'turnaround' and 'optimization' of the business under Advent International's ownership

6-12 monthsYOU ARE HERE

6 to 12 months months

The first round of Dress Barn store closures and staff reductions will likely be announced as Advent implements cost-cutting measures

12-24 months

12 to 24 months months

Consumers will likely notice a decline in the quality and selection of Dress Barn's women's professional and casual clothing as the company reduces inventory levels and defers store maintenance and renovations

Similar Cases

Other companies that followed a similar path after PE acquisition

What You Can Do

Actions

  • Consumers should be prepared for a potential decline in the quality and selection of women's professional and casual clothing at Dress Barn stores over the next few years

  • Consumers who rely on Dress Barn for their work and casual wear should consider alternative retailers that may better meet their needs in the long run

Alternatives

CostcoSAFE

Employee-owned warehouse retailer

TargetSAFE

Publicly traded retailer with strong values

Share this company's PE status

"Dress Barn is now PE-owned. Here's what that means for you."