Ascena completes Charming Shoppes buyout

SUFFERN, N.Y. (AP) -- Ascena Retail Group Inc. has completed its buyout of Layne Bryant owner Charming Shoppes Inc. and is taking steps to shed parts of the acquired business that it doesn't want.

Ascena announced in May that it was buying Charming Shoppes for about $890 million. The deal gives Ascena access to the large-size women's clothing market with Lane Bryant and Catherines Plus Sizes stores.

But Ascena said Friday it plans to close Charming Shoppes' remaining Fashion Bug operations by early next year and may sell Charming's direct marketing business called Figi's.

Charming Shoppes had closed 124 of its Fashion Bug stores last year. The Charming Shoppes web site says there are about 600 Fashion Bug stores in 43 states. A message seeking comment on how many people are employed at the stores was not immediately returned.

Ascena also said it is considering selling the profitable and growing Figi's business because it is not a clear fit with the clothing brands.

Ascena, based in Suffern, N.Y., already owns Dressbarn and Maurices stores that offer clothing for young and older women, while its Justice stores cater to girls ages 7 to 14.

With the deal for Charming Shoppes of Bensalem, Pa., completed, Ascena runs about 3,800 stores.

Ascena financed the acquisition with available cash and $325 million that it borrowed from credit facilities.

Charming Shoppes will become an Ascena subsidiary. Its stock stopped trading on the Nasdaq and Chicago Stock Exchange at the close of business on Thursday.

Ascena's stock rose 19 cents to $19.47 in afternoon trading Friday. Its shares are near the high end of their 52-week range of $12 to $22.62