Anchor Blue Retail Group Signs Agreement to Sell 73 Levi`s & Dockers Outlet by MOST Stores to Levi Strauss & Co.

Asset Purchase Agreement is Part of Company`s Restructuring Plan Under Chapter
11

Levi`s & Dockers Outlet by MOST Stores Open for Business-as-Usual During Sale
Process

ONTARIO, Calif.--(Business Wire)--
Anchor Blue Retail Group, Inc. ("Anchor Blue" or the "Company"), parent of the
Anchor Blue and Levi`s & Dockers Outlet by MOST clothing chains, announced today
that the Company has signed an Asset Purchase Agreement (APA) to sell 73 Levi`s
& Dockers Outlet by MOST stores to Levi Strauss & Co. The agreement is part of
Anchor Blue`s restructuring plan under which the Company has filed a voluntary
petition for protection under Chapter 11 of the United States Bankruptcy Code in
the United States Bankruptcy Court for the District of Delaware to enter a 363
sale process to facilitate a restructuring. As part of its filing, Anchor Blue
will be seeking Court approval to name Levi Strauss & Co., one of the world`s
largest branded apparel companies and the global leader in jeanswear, as the
lead bidder in a Court supervised auction process.

"After exploring a number of alternatives, we decided that the most efficient
way for us to improve the capital structure of Anchor Blue and sell our Levi`s &
Dockers Outlet by MOST stores was to pursue restructuring under Chapter 11
protection," said Thomas Sands, President and CEO of Anchor Blue Retail Group.
"Levi Strauss & Co. has been an excellent partner and a critical reason for the
success of our Levi`s & Dockers Outlet by MOST stores and we believe is best
positioned to take the operation forward and continue to provide customers with
a superior Levi`s and Dockers shopping experience."

The sale of the Levi`s & Dockers Outlet by MOST stores pursuant to Chapter 11 is
expected to close later this summer. During this time stores will be open for
business-as-usual. In conjunction with the filing, Anchor Blue has obtained
financing to help enable the Company to meet its obligations to employees and
suppliers during this period.

Anchor Blue Retail Group is the holding company for two subsidiaries -- Anchor
Blue Division and Levi`s & Dockers Outlet by MOST Division. Anchor Blue is a
specialty retailer of casual apparel and accessories for the teenage market.
Founded in 1972, the Company has 177 stores in 12 states. Anchor Blue offers a
great assortment of well-priced fashion basics with West Coast style in a fun
environment. MOST is an outlet store retailer that holds the exclusive U.S.
license for Levi's Outlet & Dockers Outlet Stores. Known for its denim apparel
and reasonable prices, MOST operates 74 stores across the U.S.

MWW Group
Media:
Susan Kenney, 201-964-2392
skenney@mww.com
or
Rich Tauberman, 202-585-2282
rtauberman@mww.com

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