NEW YORK – Aeropostale, once the vibrant epicenter of the mall scene, is seeking Chapter 11 bankruptcy protection.
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.
READ MORE: Le Chateau turnaround plan foresees closing 40 more stores over next three years
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.
READ MORE: Discount supermarkets are ratcheting up the bargains: experts
The company’s shares traded for more than $30 six years ago, when annual 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.
Comments