UPDATE 1-Dress Barn plans to reorganize into holding company

* To become unit of Delaware-based Ascena Retail Group

* Ascena proposed to trade on Nasdaq under ticker “ASNA”

* Reorganization planned for around Jan 1

* Shares down 3 pct

Aug 20 (BestGrowthStock) – Women’s clothing retailer Dress Barn
Inc’s (DBRN.O: ) said it plans to reorganize itself as a holding
company, Ascena Retail Group, based in Delaware.

Once this is done, each of its Dress Barn, Maurices and
Tween Brands (which operates under the Justice brand), would
become units of Ascena Retail Group, which would replace the
present company as the publicly held corporation, Dress Barn
said.

Dress Barn shareholders would become stockholders of this
new holding company on a one-for-one basis, holding the same
number of shares and same ownership percentage after the
reorganization as they held immediately prior to the revamp,
the company said.

“In recent years, we’ve become a fundamentally different
company that extends beyond the original dressbarn concept and
brand,” Chief Executive David Jaffe said.

“We expect the holding company structure to enable us to
leverage our infrastructure while allowing each brand to focus
intently on delivering a great experience to its customer.”

The Justice brand came to Suffern, New York-based Dress
Barn in November last year after the retailer bought
teen-apparel seller Tween Brands Inc to capture a larger share
of the tween girls’ apparel market.

The core Dress Barn concept caters to women in their
30s-50s, but has lagged larger and more popular peers like
AnnTaylor Stores Corp (ANN.N: ), Talbots Inc (TLB.N: ) or Chico’s
FAS Inc (CHS.N: ).

Ascena is expected to trade on Nasdaq under the ticker
symbol “ASNA.” If the plan is approved, the reorganization is
expected to begin around Jan. 1.

Dress Barn shares have lost around 30 percent of their
value since they hit a year-high in April. They were down 3
percent at $21.63 Friday on Nasdaq.

The larger S&P 1500 Apparel Retail Sub-Industry Index
(.15GSPRETA: ) was down about 2 percent.
(Reporting by Nivedita Bhattacharjee in Bangalore)

UPDATE 1-Dress Barn plans to reorganize into holding company