Ashley Stewart Owner Urban Brands Files for Bankruptcy

9/22/2010
Urban Brands, parent company of apparel retailer Ashley Stewart, has filed for Chapter 11 bankruptcy protection after suffering three years of losses. The company's listed liabilities range from $100 million to $500 million, with assets of only $10 million to $50 million.

The chain has more than 200 stores in locations across the U.S., catering to plus-size urban African-American and Hispanic women. According to published reports, Ashley Stewart will continue with a business-as-usual strategy during its financial reorganization. Urban Brands is reportedly seeking a buyer for the chain, which has a strong brand name but has suffered during the recent economic downturn.

In 2009, Urban Brands posted a loss of $28.6 million, with sales falling to $174.6 million from $179.6 million the previous year.
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