"Improving HBC's performance will require significant time and patient long-term capital that is better suited in a private company context."
The retailer fell short on earnings and revenue last quarter and same-store sales dropped more than 3%.
The company’s CEO remains optimistic about the retailer’s future.
"The decision was difficult, but necessary, as the Dressbarn chain has not been operating at an acceptable level of profitability."
Deborah Rieger-Paganis says she is "committed to instilling financial discipline across the organization as we work to drive a successful turnaround."
The seller of Italian jeans said a misconceived turnaround strategy caused it to enter into expensive, long-term leases for retail locations.
CEO Marvin Ellison says the retailer's turnaround is progressing, citing "results we are seeing in early spring categories."
The layoffs of about 100 senior-level staff will allow the retailer to move faster, reduce costs, and be more responsive to changing customer expectations.
CFOs shepherd midsize companies through an era of transformation and upheaval.
“People are finally starting to understand that this isn’t a transition year [for CVS], it’s a transition decade,” one analyst says.
A Chapter 11 filing would be the second for the shoe retailer in less than two years amid heavy debt and online competition.
U.S. retail sales in the all-important holiday month recorded its biggest drop in more than nine years.
