Aeropostale Files Chapter 11: Latest Retail Bankruptcy After American Apparel, Cache, Wet Seal And Quiksilver

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Teen retailer Aeropostale, a company once seen as a competitor to Abercrombie & Fitch, filed for Chapter 11 bankruptcy, listing assets of $354 million and liabilities of $390 million. The company experienced an atrocious fiscal 2015, reporting a net loss of $136.9 million in a year in which sales declined 18%.
Soon after reporting full year results, the company had its stock delisted from the NYSE, and overnight filed for bankruptcy in order 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.”
The retailer has secured a $160 million commitment from Crystal Financial, LLC to provide DIP financing, and has an initial plan to close 154 out of roughly 800 stores.

This post was published at Zero Hedge on 05/04/2016.