Ann Taylor’s Bankrupt Parent Wins Chapter 11 Plan Approval (1)

Ann Taylor parent Ascena Retail Group Inc.'s unsecured creditors will share at least $7.25 million of the company’s bankruptcy sale proceeds, following court approval of its Chapter 11 plan.

The plan, approved Thursday by Judge Kevin R. Huennekens of the U.S. Bankruptcy Court for the Eastern District of Virginia, provides unsecured creditors a far better recovery than the $500,000 initially proposed last July.

Following the distribution, the company will wind down its remaining operations, having sold its women’s clothing businesses for more than $651 million.

“To have a retail case succeed in this environment is phenomenal,” Huennekens said Thursday. ...