Clothing party to close all 650 stores, closing the whole business

Ascena Retail Group said late Monday The women's budget clothing chain, Dressbarn, closes about 650 stores in the US, as it focuses on profitable brands.

The company, which also houses fashion brands Ann Taylor and Lou & Gray, said the pace would strengthen its overall financial performance.

"This decision was difficult, but necessary, as the chain of chain chain has not operated at an acceptable level of profitability in today's end-user environment," said clothing retailer Steven Taylor.

Dressbarn, a household name for over 50 years, has struggled to increase sales in a competitive market where it battles with online stores such as Amazon and off-price retailers like TJ Maxx.

Ascena shares, which have more than halved this year, were up 3 percent in extended trading.