Ann Taylor is the Latest to Close Stores

Ann Taylor’s announcement yesterday that the company is closing 117 stores doesn’t surprise us. The retailer’s same-store sales declined 9.4% in December year over year, after a third-quarter drop of 0.4%. Plus, peers like Talbots are also cutting back.The retailer is closing 39 Ann Taylor stores through this year and 2010, as well as 78 of its Loft units. The company operates just over 350 Ann Taylors and 500 Lofts. Referring to the company’s new chain, which is geared toward the “modern boomer” and was scheduled for a fall launch, CEO Kay Krill says executives “remain very optimistic.” “However, for 2008, we are focusing our resources on implementing our restructuring program and ensuring our core businesses are strong, healthy and more profitable.”As recently as November, Krill said the new chain could become a $1-billion business. It’s unclear how far on hold the “modern boomer” stores are, but the company’s statement seems to imply that there is a delay.Is it a good time for Ann Taylor to expand the business by rolling out this concept, or would a hasty launch make it go the way of Gap’s Forth & Towne?