Ascena also owns Ann Taylor and Lane Bryant and the company said in a statement that the decision to close Dressbarn "has no impact on the operations of any of Ascena's other brands and will strengthen the company's overall financial performance."
"This move is in line with the company's commitment to comprehensively assess and optimize its portfolio by focusing resources on its most profitable brands to position the business for long-term growth and enhance shareholder value," Ascena added.
Ascena reached an agreement in March to sell a majority stake in Maurices, another women's clothing chain.
Shares of Ascena jumped 2.6% to $1.17 a share in after-hours trading Monday after closing the session down 9.5%.
"For more than 50 years, Dressbarn has served women's fashion needs, and we thank all of our dedicated associates for their commitment to Dressbarn and our valued customers," said Dressbarn Chief Financial Officer Steven Taylor. "This decision was difficult, but necessary, as the Dressbarn chain has not been operating at an acceptable level of profitability in today's retail environment."
All Dressbarn stores will remain open and are "conducting business as usual," Dressbarn said in a separate statement. The company's e-commerce site also remains open.