The French designer was synonymous with striped sweaters and Left Bank insouciance.
The music star had launched the collection last February during New York Fashion Week.
Inventories are being kept tight in hope of increasing full-price selling and reducing markdowns.
The retailer has a new $300M in additional debt financing from ESL Investments.
A decision from a Manhattan bankruptcy court judge is expected later this week.
The company said “lack of clarity across the assortment” was the problem for the quarter.
The retailer’s cleaner stores and faster checkout resulted in better sales for the second quarter and impressed Wall Street.
Ascena stock is getting a boost from the disclosure that institutional buying picked up in the second quarter.