The company plans to close about 150 of its 805 stores
Yet another teen clothing and accessories retailer has run into rocky seas.
On May 4, 805-store chain Aéropostale filed for Chapter 11 in the United States Bankruptcy Court for the Southern District of New York, with plans to close about 150 stores.
Unlike other teen retailers that have ran into similar bad straits, Aéropostale hopes to remain in business, and will use the bankruptcy process to close stores and resolve its ongoing dispute with private equity firm Sycamore Partners, it says. Immediate plans include the shuttering of 113 U.S. locations, as well as all 41 stores in Canada, by the first week in May.
According to a statement, the company plans to emerge from Chapter 11 as a stand-alone entity, although it is continuing its previously announced sales process. It has secured a commitment for $160 million in debtor-in-possession financing provided by Crystal Financial.