Aeropostale to file for bankruptcy this week

Teen retailer Aeropostale Inc. is preparing to file for bankruptcy this week and close more than 100 stores on falling sales and increasing losses. The company has been unable to return to growth in the last few years, unlike its peers American Eagle Outfitters and Abercrombie & Fitch, as young customers have turned away from branded clothing.

Aeropostale would become the latest retailer to file for Ch-11 bankruptcy. Previously, the Wet Seal, Quicksilver, Pacific Sunwear, Sports Authority, and Vestis Retail (parent of Eastern Mountain Sports) are among the chains to seek bankruptcy protection from the courts in the last 16 months.

The company’s shares were delisted by the NYSE in April 2016 for trading below $1 a share for an extended period.

Source: Fortune.com

 

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