Aeropostale To File Chapter 11 This Week, Plans To Close Over 100 Stores
Aeropostale plans to file for bankruptcy protection in the next few days—before May’s rent is due—and it's preparing to close more than 100 of its 800 locations.
More closings could follow, as the retailer reorganizes itself around the remaining stores, the Wall Street Journal reports. The company—which held a $3B market cap in 2010—hopes to turn around three straight years of financial losses and an estimated market value of just $2.9M.
The retailer’s bankruptcy filing would add to a long list of recent retail store closings, including department stores Sears and Macy’s along with Sports Authority’s recently announced closures.
Sports Authority also had plans to reorganize itself, but recently decided on liquidation instead—around 55% of US retailers who’ve sought Chapter 11 protection since 2005 ended up going out of business. [WSJ]
