HomeMy WebLinkAbout2016 05-04 Aeropostale, one-time mall king, files bankruptcy and closes some stores, including 4 in Minnesota STAR TRIBUNE5/5/2016
Aeropostale, one-time mall king, closing 154 stores, 4 in Minn. - StarTribune.com
BUSINESS
Aeropostale, one-time mall king, files
bankruptcy and closes some stores,
including 4 in Minnesota
Retailer seeks protection, will shutter many stores.
By Associated Press MAY 4, 2016 — 7:20PM
NEW YORK -Aeropostale, once the vibrant epicenter of the U.S. mall scene, is seeking
Chapter 11 bankruptcy protection and closing 20 percent of its stores in North America.
The New York company said Wednesday that it is closing 113 of its 739 U.S. stores and
all 41 locations in Canada. Going -out -of -business sales at those U.S. stores will begin this
weekend.
Its court filing listed four Minnesota stores to be closed: Coon Rapids, Woodbury, Blaine
and Maplewood.
Aeropostale expects to emerge from bankruptcy protection within six months as a
smaller company after renegotiating contracts and resolving an ongoing dispute with the
investment firm Sycamore Partners, a major shareholder that pushed through changes in
company leadership.
In the filing, CEO Julian Geiger lashed out at Sycamore, which he accused of hampering
the company's turnaround plans.
"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," Geiger said through a company release. "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."
Almost every teen retailer has suffered under a vastly altered consumer landscape that
took root during the recession.
Fast fashion" outfits like H&M and Forever 21, with more inexpensive clothes, have
emerged in recent years to take a growing market share from Aeropostale, Abercrombie
& Fitch and American Eagle Outfitters, stores that not so long ago dominated the retail
sector.
Once worth almost $2.6 billion, Aeropostale's market capitalization has fallen to about
$2 million.
The company's shares traded for more than $30 six years ago, when the company's
animal sales exceeded $2 billion.
Two weeks ago, it was delisted from the New York Stock Exchange with shares having
failed to break the $1 barrier since last year. Shares on Wednesday were trading over the
counter for less than 3 cents.
The company early this year said that it would cut expenses by $35 million to $40
million annually and trimmed its corporate staff by 13 percent, about 100 jobs.
10000641+
(http://stmedia.startribune.com/images/AP_6726902(
Aeropostale filed for bankruptcy protection on
Wednesday and said it would close more than
100 stores, including in Blaine, Coon Rapids,...
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