The company has maintained however declining mall traffic and the competitive teen retail market caused a serious shift.
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Aeropostale was long seen as the value option for teens who wanted trendy animal logos on their polos, Siegel said.
Department store chain Macy’s launched Aeropostale as a private label brand in the early 1980s and opened the first Aeropostale standalone stores in 1987. There are three other Aeropostale stores in Hampton Roads: Greenbrier Mall in Chesapeake, Patrick Henry mall in Newport News and an outlet mall in Williamsburg.
Aeropostale stores throughout Canada are shutting its doors.
The news follows Monday’s news that Sears Holdings would close its store in downtown Wausau as part of that company’s continuing reductions nationally. “The Debtors therefore have an obligation to other creditors to investigate and assess potential claims against the Sycamore Parties”, Aeropostale lawyers wrote in a court filing.
In a release, Aéropostale said it will use the Chapter 11 process to “optimize its store footprint, access additional tools to shed or renegotiate burdensome contracts, resolve its ongoing disputes with Sycamore Partners and achieve long-term financial stability”. This money combined with operation cash flow will allow the company to meet its go-forward financial commitments.
Aéropostale may soon be a thing of the past for teenagers in the USA and Canada.
Aeropostale had been trying desperately to reverse its mounting losses. The company also said last week that it would delay filing its annual report.
In March, Aeropostale tapped Stifel Financial to help assess a possible sale or restructuring. The company also is working with law firm Weil, Gotshal & Manges LLP and FTI Consulting Inc. on the filing. A spokeswoman for Li & Fung said the company declined to comment.
According to a statement, the company voluntarily filed for Chapter 11 Bankruptcy Wednesday, in NY.
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Aeropostale, the NY based trendy retail chain for young adults, which was once considered an attraction for the U.
