Aeropostale has been gearing up for bankruptcy for some time as tanked sales and shares never turned around, but now the filing could come as soon as this week and a host of stores will fall victim in the fray.
The teen retailer is expected to file for Chapter 11 ahead of the due date for May rent payments and close more than 100 of its 800 stores, The Wall Street Journal reported, citing people familiar with the matter. Talks are reportedly underway with specialty lender Crystal Financial on a loan to finance its bankruptcy operations.
Retailers—especially specialty purveyors of teen gear—have been falling like dominos in the face of fast fashion competition from stores like H&M. Pacific Sunwear, the California-style teen retailer, filed for bankruptcy less than a month ago, Wet Seal gave in last year, and Quicksilver tapped Chapter 11 for aid too.
Read more at Sourcing Journal.