A growing plus-size fashion chain is hungry to take a bite out of a bankrupt rival.
Avenue, a Rochelle Park, NJ-based plus-size retailer with more than 250 stores, is circling locations owned by Ashley Stewart, a 168-store plus-size chain that filed for Chapter 11 on Monday, sources told The Post.
Versa Capital, a Philadelphia private-equity fund that bought Avenue out of bankruptcy in 2012, is eyeing Ashley Stewart’s real estate to expand the Avenue brand, according to sources briefed on the situation.
A spokeswoman for Versa declined to comment.
Ashley Stewart, which specializes in urban styles, filed for bankruptcy after failing to find a last-minute buyer, according to insiders.
Potential bidders for Ashley Stewart’s assets in bankruptcy court include Ascena Retail Group, owner of Dress Barn and Lane Bryant, sources said.
Joe Sitt, a New York real estate mogul who was an original founder of the chain, is also seen as a potential bidder, sources said.
“It’s salvageable,” says Jamie Gorman of Only Nine, a New York-based plus-size manufacturer.
Ashley Stewart, owned by Boston-based liquidator Gordon Brothers, said in a Monday statement that “several entities from both the financial and apparel industries have expressed interest.”