It is an unfortunate inevitability that every so often, a major company that once dominated retail sales falls on hard times.
Aéropostale, the apparel and accessories retailer that boasts more than 700 locations in the United States, has experienced a decline in sales and popularity in recent years. The past few months alone saw its stock price dip steadily, falling to less than $1 in late August.
As opposed to shrinking in defeat, Aéropostale has chosen to use its situation as an opportunity to grow.
The company announced in early October that it had entered into a “domestic licensing agreement” with home textile company Himatsingka America for the 2016 back-to-school season.
Shares of the company jumped more than 9 percent on the news.
Himatsingka, which produces textiles in European and Asian countries as well as North America, assists major brands including Kate Spade New York, Novogratz and Calvin Klein.
The company will design and manufacture “home textiles like bedding and bath linen,” all of which will bear the Aéropostale brand. Himatsingka America will also be in charge of distributing the products to retailers and department stores across the country.
Aéropostale CEO Julian Geiger is optimistic that Himatsingka America’s skills combined with Aéropostale’s status as a competitive retailer will attract plenty of new buyers and elevate the retailer’s reputation in the market.
“We look forward to capitalizing on the power of the Aéropostale brand to expand our reach through new bedding and bath products,” he said.
David Greenstein, CEO of Himatsingka, also anticipates success, commenting, “We share their passion for creative design and quality workmanship and look forward to a meaningful relationship.”