Cos. form joint venture for Fashion Bug sale
BENSALEM, Pa. (AP) — A trio of companies has formed a joint venture that will be responsible for selling the remaining inventory of Fashion Bug, a low-priced women's clothing chain.
Earlier this year Ascena Retail Group Inc. closed on its $890 million buyout of Charming Shoppes Inc., which owns Fashion Bug. Ascena plans to close the 568 Fashion Bug stores that are left.
SB Capital Group LLC, Tiger Capital Group LLC and Great American Group LLC said Tuesday that they will be responsible for the "Total Inventory Blowout Sale," which will offer shoppers discounts of as much as 50 percent on merchandise.
Fashion Bug has kept more than 5,900 workers to help the three companies run the stores through the completion of the sale process.
The first Fashion Bug store opened in Audubon, N.J., in the 1960's. At its peak in the 1990's, the brand had more than 1,400 stores.