Aeropostale seeks Chapter 11 bankruptcy protection
Posted on Tuesday, May 10th, 2016 at 8:17 pm
Well-known teenage fashion brand Aeropostale filed for Chapter 11 bankruptcy protection on May 4 due to the brand’s inability to compete with new clothing brands in the market.
According to USA Today, the clothing company has faced major pressure since the emergence of clothing brands like “Forever 21” and “H&M.” Declining profitability is causing Aeropostale to close 113 of its 739 stores in the U.S. and all of its 41 locations in Canada. The closing stores will start liquidation sales as soon as May 7. Retail analysts are in agreement that Aeropostale needs to reinvent its brand moving forward. The company listed $354 million in assets and $390 million in debt when they secured $160 million in bankruptcy financing from Crystal Financial LLC.
If you need to file for bankruptcy, working with a knowledgeable attorney is essential, especially if you want your business to have a chance of recovering. Speak with a Raleigh lawyer at the Bradford Law Offices, PLLC by calling (919) 758-8879 to learn more about your legal options.