#4 - Ascena Retail Group (NASDAQ:ASNA)
It’s not a good sign when a company says it is “weighing all options” to stay afloat. They may as well as just say they’re filing for bankruptcy. But so far, that’s not the message that Ascena Retail Group (NASDAQ:ASNA) is sending to investors. At least not directly.
However, with the company recently executing what the S&P Ratings deem a “selective default” by purchasing some of its debt at below-par prices, the company’s credit rating was dropped to CCC-. Essentially, analysts are expecting a default within the next six months.
Ascena recently adopted a tax benefits preservation plan which is a veiled attempt to hold off a hostile takeover that would allow the acquirer to use the company’s tax-loss carry forwards.
Like all retailers, the company’s business is in disarray as many of its signature Ann Taylor, Loft, and Lane Bryant stores have yet to open. The particular obstacle for Ascena is that many of its brands are tailored to the working professional. As many of those professionals may be choosing or required to work from home, the definition of office casual will be a direct assault on the company’s business.
Ascena’s stock is down 83% year to date.
About Ascena Retail Group
Ascena Retail Group, Inc engages in the retail of apparel for women, and tween girls. It operates through the following segments: Premium Fashion, Value Fashion, Plus Fashion, and Kids Fashion. The Premium Fashion segment consists of products under Ann Taylor and LOFT brands. The Value Fashion segment includes the Dressbarn brands.
Read More - Current Price
- $0.00
- Consensus Rating
- N/A
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
