Aeropostale files Chapter 11 bankruptcy
Posted on Thursday, May 26th, 2016 at 4:04 am
After experiencing monetary losses for thirteen quarters in a row, Aeropostale has filed for Chapter 11 bankruptcy. The company plans to restructure in a way that will allow it to exit bankruptcy in six months or less. These plans include closing one hundred and thirteen stores in the U.S., as well as forty-one stores in Canada. The company is also eliminating the contracts that troubled the business and is seeking a compromise with Sycamore Partners, a prior investor.
Analysts have stated Aeropostale’s issues likely stem from their inability to compete with fast fashion. Fast fashion retailers have the ability to put out the latest trends quickly and at low prices. The company tried to keep prices competitive but continued to lose revenue despite sales. Aeropostale’s low value removed them from the New York Stock Exchange in April. Executives are willing to sell their brand and plan to announce a buyer if one emerges in the next six months.
Filing for bankruptcy may seem like the end to your business, but with a helpful attorney, companies are often able to rebuild financially. Bankruptcy could be the best option for you if you are facing financial struggles. To further explore this financial route, speak with an experienced Raleigh bankruptcy lawyer at Bradford Law Offices, PLLC by calling (919) 758-8879.