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Shining a light on PE ownership.

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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

View PE Firm Profile

What Made It Great

“

Value-oriented women's apparel chain serving working women

What PE Will Likely Do

Predictions

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

Phases
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

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Bankruptcy

Sports Authority

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Operating

Payless ShoeSource

Golden Gate Capital·2012

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99 Cents Only Stores

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Joann

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What You Can Do

Take Action

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

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