EXHIBIT 99.1

FOR IMMEDIATE RELEASE

                      ANN TAYLOR ANNOUNCES CONSUMMATION OF
                           $100 MILLION FINANCING AND
                     REDEMPTION OF 8-3/4% SUBORDINATED NOTES

      New York, New York, June 21, 1999 - AnnTaylor  Stores  Corporation  (NYSE:
ANN)  announced  today  that it had  completed  the sale of a new  issue of deep
discount   convertible    subordinated   debentures   due   2019   ("Convertible
Debentures"). The net proceeds of the sale are being used in connection with the
redemption of the $100,000,000  outstanding 8-3/4%  Subordinated  Notes due 2000
(the "8-3/4% Notes") issued by the Company's wholly owned subsidiary  AnnTaylor,
Inc.

      The  Convertible  Debentures  were sold for an issue  price of $552.56 per
$1,000 principal amount of Debenture,  and have an aggregate principal amount at
maturity of  $180,975,000.  Cash interest is payable on the principal  amount at
the rate of 0.55% per annum.  This  interest  rate and the  accrual of  original
issue  discount  represent  a  yield  to  maturity  of  3.75%.  The  Convertible
Debentures  are  convertible  at the option of the holders  thereof  into 12.078
shares  of the  Company's  common  stock per  $1,000  face  amount of  Debenture
(equivalent to $45.75 per share of common stock). The Company's obligations with
respect to the Convertible  Debentures are guaranteed on a subordinated basis by
AnnTaylor, Inc.

     Simultaneously with the closing of the sale of the Convertible  Debentures,
AnnTaylor,  Inc.  instructed  the trustee  under the  Indenture  relating to the
8-3/4% Notes to issue a notice of redemption for all of the  outstanding  8-3/4%
Notes,  at a  redemption  price of 101.375% of  principal  amount,  plus accrued
unpaid  interest to the  redemption  date,  and deposited with the trustee funds
sufficient for the satisfaction and discharge of AnnTaylor,  Inc.'s  obligations
under the Indenture.  The redemption  date for the 8-3/4% Notes will be July 22,
1999.

      The Convertible Debentures are not registered or required to be registered
under the  Securities  Act of 1933 (the  "Securities  Act") and were sold in the
United States in a private  placement  under Rule 144A under the Securities Act,
and may not be offered or sold in the United  States absent  registration  or an
applicable exemption from registration requirements.

      Ann Taylor is one of the country's  leading women's  specialty  retailers,
operating 384 stores in 42 states and the District of Columbia.

                                       o o o

Contacts:    Investor Relations:                Media Relations:
             Barry Erdos                        Jill Golden
             EVP - Chief Financial Officer      Vice President - Communications
             (212) 541-3318                     (212) 541-3269