Apparel retailers Dress Barn, Tween Brands merging
NEW ALBANY, Ohio -- Girls' clothing retailer Tween Brands TWB says it's being acquired by women's apparel seller Dress Barn DRBN in a stock deal worth about $157 million.
Suffern, N.Y.-based Dress Barn also will pay off the bank debt of Tween Brands, the New Albany, Ohio, company behind the Justice stores aimed at girls 7-14.
Dress Barn CEO David Jaffe said Thursday the Justice brand will diversify and complement his company's existing business.
Officials say Dress Barn will allow Tween Brands to operate as a separate subsidiary with its current management team remaining in place.
Tween Brands has posted losses in recent quarters due to a drop in sales amid the recession.
Dress Barn currently operates 841 Dress Barn stores and 716 stores under the "Maurice's" name.