Jaffe continued, “We believe that Justice is a highly attractive business that has come under significant pressure as a result of the tight credit market and the challenging consumer environment. The repayment of Tween Brands Inc's bank debt immediately alleviates the financial pressures on the Justice business so that it can reach its full potential.
The management at both companies believes there is an excellent opportunity over the next several years to grow the operating margin for the Justice business to a level at least consistent with that generated by Dress Barn Inc's existing consolidated operations.
As we saw with our integration of maurices, the implementation of best practices across our entire organization can help to realize enhanced sales and profitability. Additionally, we expect to realize economies of scale in areas such as sourcing and real estate, as well as capture other potential synergies and cost savings.”
Banc of America Merrill Lynch Securities is acting as financial advisor and Proskauer Rose LLP as legal advisors for Dress Barn, Inc. Peter J. Solomon Company is acting as financial advisor and O'Melveny & Myers LLP as legal advisors to Tween Brands Inc.