Aeropostale Files for Chapter 11 Bankruptcy, Plans to Close 154 Stores
Posted on May 9, 2016
Aeropostale, Inc., a retailer of casual apparel and accessories for young adults, has filed for Chapter 11 bankruptcy protection. Aeropostale has also announced plans to close 154 stores in the U.S. and Canada. The company says it plans to emerge from bankruptcy within the next six months.
Aeropostale continues to pursue a possible sale. Aeropostale is reviewing its leases and other contracts. The initial store closures include 113 U.S. locations and all 41 stores in Canada. Store closing sales are scheduled to begin the weekend of May 7-8, 2016 in the U.S. and May 9 in Canada. Aeropostale will still have over 640 stores after this round of store closings.
Julian Geiger CEO says in a statement, "While initiatives such as the implementation of our two-chain Factory and Mall strategy and our merchandise repositioning have started to gain traction, the ripple effects of an ongoing dispute with our second-largest supplier put substantial strain on our liquidity while also preventing us from realizing the full benefits of our turnaround plans. As a result, 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. We appreciate the loyalty and support of our customers, employees and business partners as we complete this process."
USA Today has a complete list of the stores that will be closing.