EXHIBIT 1
ANNTAYLOR
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NEWS RELEASE
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142 West 57th Street
New York, N.Y. 10019
FOR IMMEDIATE RELEASE
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ANN TAYLOR ANNOUNCES CLOSING OF TRANSACTION
WITH CYGNE DESIGNS
New York, New York, September 23, 1996 -- AnnTaylor
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Stores Corporation (NYSE: ANN) and its wholly owned
subsidiary AnnTaylor, Inc. today announced that, pursuant to
their previously announced agreement with Cygne Designs, Inc.
("Cygne") and Cygne's wholly owned subsidiary Cygne Group
(F.E.) Limited, the Company consummated the acquisition of
Cygne's entire interest in Ann Taylor's direct sourcing joint
venture with Cygne known as CAT, and the assets of what is
known as the Ann Taylor Woven Division of Cygne, the division
of Cygne that was responsible for sourcing merchandise for
Ann Taylor.
In payment of the purchase price for Cygne's interest in
CAT and the Woven Division assets, the Company issued
2,348,145 shares of Company Common Stock and paid Cygne
approximately $3,200,000 in cash for inventory and fixed
assets, and approximately $6,500,000 in cash in settlement of
open accounts payable by Ann Taylor to Cygne for merchandise
delivered by Cygne prior to the closing, subject to post-
closing adjustments. The Company also assumed certain
liabilities related to the operations of the Woven Division.
Ann Taylor is one of the country's leading women's
specialty retailers, operating 306 stores in 40 states and
the District of Columbia.
Contact: Investor Marketing/Public
Relations: Relations:
Walter J. Parks Gina Iaderosa
SVP - Finance Director of Marketing &
(212) 541-3318 Communications
(212) 541-3347