Justice Is Closing All Stores
Department stores commonly serve as anchors, drawing in customers and encouraging smaller retail establishments to sign lengthy leases. But the loss of Justice is still a blow and yet another reminder malls will soon need to get very creative if they want to avoid bankruptcy themselves in the wake of the pandemic. For years, retailers have been diverting more resources into building their online presence instead of investing in physical stores.
The company is closing a significant number of Justice stores and a select number of Ann Taylor, Loft, Lane Bryant and Lou & Grey stores. The company is closing all of its stores in Canada, Puerto Rico and Mexico and is closing all of its Catherines stores. Justice’s parent company, Ascena Retail Group filed for Chapter 11 bankruptcy last week. Chapter 11 provides businesses or large investors with protection from creditors while they continue operating and develop a repayment plan.
In the summer, Ascena announced its intention for Justice to become a “primarily online platform,” supplying clothes, footwear, and accessories for girls between the ages of 6 and 12. All stores were closed after its former parent company, Ascena Retail Group, filed for bankruptcy. As part of Ascena Retail Group’s bankruptcy reorganization in July 2020, 600 Justice locations are slated to close, leaving around 100 open. Ascena also announced that the Justice brand will also solely focus on online sales.
The sale is announced as part of a bankruptcy plan for Ascena Retail who sold Justice to Blue Star Alliance. Ascena Retail originally filed for Bankruptcy Chapter 11 in July and announced the closure of all Catherines stores, some Lane Bryant, Ann Taylor Factory and Justice stores . At that time, the Justice store at the CoolSprings Galleria was not listed as a store to close.
The Justice brand, formerly Limited Too, is geared toward girls 6 to 12. It joined Ascena in 2009 and has 826 specialty retail and outlet stores. Ascena also owns Ann Taylor, Loft, Lane Bryant, Justice, Catherines, Cacique and Lou & Grey.