Ascena Retail Group entered into an asset purchase agreement with Sycamore Partners‘ affiliate, Premium Apparel, to sell Ann Taylor, LOFT, Lane Bryant and Lou & Grey brands for $540 million on a cash-free and debt-free basis.

Kirkland & Ellis is serving as legal counsel to the Ascena and Alvarez and Marsal is serving as restructuring advisor. Guggenheim Securities is serving as the company’s financial advisor. Davis Polk & Wardwell is serving as legal counsel to Sycamore Partners and Premium Apparel.

Under the APA, Premium Apparel has committed to retaining a substantial portion of the retail stores and associates affiliated with these brands.

“We are pleased to announce an agreement with Sycamore Partners, an experienced and trusted leader in the retail sector. The commitment Sycamore has made to our people and business is a testament to the long-term growth potential of our brands,” Gary Muto, CEO of Ascena, said. “At Ascena, we have made significant progress in our financial restructuring process. We have worked diligently to maximize the value of all of our brands, and today’s agreement with Sycamore is the latest example.

“I want to thank our associates, as well as our customers and vendors, for their support of Ascena and our brands. We are looking forward to the holiday season and beyond in Ann Taylor, LOFT, Lane Bryant and Lou & Grey stores and online. As our customers’ needs continue to evolve, our teams remain focused on delivering great fashion and memorable experiences however our customer chooses to shop.”

“Ann Taylor, LOFT, Lane Bryant and Lou & Grey are well-known brands, each with passionate associates and loyal customers,” Stefan Kaluzny, managing director of Sycamore Partners, said. “These brands have significant potential, and we are excited about the opportunity to partner with Ascena’s talented team to continue delivering new and relevant experiences for customers.”

Sycamore Partners is a private equity firm based in New York.