UPDATE: Bankruptcy watchdog challenges Ann Taylor sale to private equity firm

The proposed $540 million sale of women’s clothing retailer Ann Taylor and related brands to private equity firm Sycamore Partners is facing opposition from the U.S. Department of Justice’s bankruptcy watchdog, which says the sale process is being conducted too quickly and contains inappropriate protections for Sycamore.

Acting U.S. Trustee John Fitzgerald III filed an objection on Thursday to the sale, which was announced by Ann Taylor parent Ascena Retail Group last week and is up for approval before U.S. Bankruptcy Judge Kevin Huennekens in Richmond, Virginia next week.

Fitzgerald said in his filing that the speedy timeframe prevents creditors and other interested parties from fully analyzing the deal.

Ascena Retail Group, Inc., said earlier it would be acquired by Premium Appare, a unit of private equity firm Sycamore Partners, for $540 million on a cash-free and debt-free basis.

Source: Reuters