Suffern, N.Y.-based Ascena Retail Group Inc., a national specialty retailer of female apparel, announced Thursday morning that it plans to spend $37 million to expand its operations in Greencastle, creating as many as 242 jobs by 2018.

Ascena, whose subsidiaries provide distribution for the company’s Justice, Lane Bryant, Maurices, Dressbarn and Catherines clothing brands, said it will invest $34 million to transform its 123-acre Greencastle distribution center into its primary e-commerce distribution hub.

The company will spend an additional $3 million to build a 40,000-square-foot addition to the 794,000-square-foot facility, located about 50 miles southwest of Indianapolis.

Built in 1954, the distribution center—locally known as FB Distro—was purchased by Bensalem, Penn.-based Charming Shoppes Inc. in 1987. Ascena in June bought Charming Shoppes, the parent of Lane Bryant, Fashion Bug and Catherines Plus Sizes.

The distribution center currently employs 185 people, and Ascena said it will begin hiring for additional distribution, warehouse and management positions later in the fall.

The Indiana Economic Development Corp. said it will provide Ascena up to nearly $2.2 million in performance-based tax credits and up to $75,000 in training grants based on the company’s job-creation plans. The city of Greencastle has approved additional property-tax abatements and other incentives.

Through its subsidiaries, Ascena operates about 3,800 stores throughout the United States, Puerto Rico and Canada.