UPDATED 05/04/16:
Aeropostale has filed for bankruptcy, The Wall Street Journal reports. Aeropostale will be closing 154 of its stores—113 located in the U.S. in addition to 41 stores in Canada—according toCNN Money. "We have chosen to take more decisive and aggressive action to create a leaner, more efficient business that is well-positioned to compete and succeed in today's retail environment," said Aeropostale CEO Julian Geiger. Aeropostale plans to emerge from its $390 million debt, reportsCNN money, within six months.
See original story below.
Times are rough for mall-based retailers, and it seems to be only getting worse.
Less than a month after PacSun announced it would file for bankruptcy, the Wall Street Journal reports Aeropostale is set to do the same later this week, citing consecutive losses over the past three years as well as plummeting sales. The news comes after the New York Stock Exchange delisted Aeropostale’s stock last month because of its "abnormally low" trading price. The company now trades on the OTCQX Best Market for 2 to 3 cents.
According to the WSJ, the New York-based company is set to file for Chapter 11 protection before its May rent payments are due and will also close 100 of its 800 locations following the the filing. Sources say company officials will restructure the remaining stores; however, the details of the changes are not known at this time.
Aeropostale has yet to release a comment. Stay tuned as more information rolls in.
