Ann Taylor named Diane Holtz to oversee merchandising for its troubled Loft division, confirming a story in The Post about her impending appointment.

Holtz will report directly to Ann Taylor Chief Executive Kay Krill.

Ann Taylor had been on a six-month search for a president to help jump start sales at Loft. But suitable candidates were scarce, leading the company to divide responsibility for the division between Holtz and Krill.

Holtz last worked for Ann Taylor as a general merchandise manager from 1997 to 2000, before leaving to join the Limited Inc., where she served as president of Limited Stores. For the past six weeks, she had been serving as a consultant to Loft.

Ann Taylor said yesterday that sales at stores open at least year declined 4.6 percent, more than analysts had expected. Most of the decline came from the Loft division, which has been hurt by recent fashion missteps.

After firing the previous Loft president Donna Noce in January, Krill has taken a more hands-on role, helping to refocus the merchandise, which is more casual than items sold in Ann Taylor’s namesake stores.

Ann Taylor shares yesterday lost 1.3 percent, or 48 cents, to close at $36.52.