Looking forward to them myself. Want to see the use of the Maurice's sale funds, hopefully as the CEO said they took out some debt and interest payments, hopefully they took out some revolver credit debt, this is something that has steady interest payments.
No company ever pays it all off but getting there's down to better level will be a big plus.
Not sure what Lane Bryant's and Catherine's sale will bring in, if/when that happens, I would guess $500-600 million+
We will see, that money will help with breathing room as well, as more debt can be paid off and maybe an early debt payment.
Bids were due on Sept. 5 for Dressbarn’s intellectual property.
I imagine we will here what came of that.
I find it so hard to believe that lenders are worried and personally think the story is false. But to each his own.
The term loan, $1,371m outstanding. Loan maturities are as follows:
2021 - $66.5
2022 - $90
2023 - $1,215
I don't see how one could be worried at this point, but, I am just thinking in a logical manner.
The company had a response recently to the article.......
The company is current on its obligations, is in full compliance with its term loan and revolver, and it intends to remain that way, Ascena’s representative said. There’s also substantial cash on hand, he said.
I think that was already a known fact, I have my own opinions about the nature of the story and where it actually came from, but that I shall keep to myself.
Still find it odd, that the company missed revenue by 0.1% at 1.27 billion for last quarter and did that with 155 less stores than the year before and that was seen as a travesty.
As well they did it with one less week of sales from the prior year. "The non-comparable sales were also flat, with the favorable timing impact resulting from the 53rd week in the prior fiscal year offset by fewer stores as a result of the company’s ongoing fleet optimization program."
Dress Barn is something that needs/is being shut down as it is the profit leech in the mix, but, 155 stores less and only have YoY sales down 0.1% doesn't give me pause the way it may give others, seems like there is one main problem well 2 and both are being sorted.
Dress Barn which they are closing and take down some debt which they are doing by selling off their bottom tier lines, seems feasible.
Yes, they will lose revenue, but its profits not revenue that are important, revenues matter for speculative stocks when one is trying to look into the future to try and guess how much they will/can make in profits once the bleeding stops.
The company suffers what many other companies do especially bloated retailers, it is too big with too many multiple lines.
Cut the number of stores down, get rid of those weighing down more profitable growing brands and focus on them.
Peace out.
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