The retailer is preparing to file for bankruptcy protection in the next few days, says the Wall Street Journal. It would be the latest teen retailer fililng for Chapter 11. Fred Katayama reports.
Another teen retailer heading for Chapter 11. The Wall Street Journal reports Aeropostale is preparing to file for bankruptcy protection in the next few days. And it says the retailer will close more than 100 of its 800 stores soon after. Just last month, teen apparel retailer Pacific Sunwear filed for bankruptcy protection. Others seeking to reorganize last year under Chapter 11 include American Apparel, Wet Seal, and Quiksilver. Teen retailers have been hit hard by competition from fast-fashion retailers like H&M and Uniqlo. Plus, their customers spend less time at the shopping mall and more time on their devices. Aeropostale was also hit by a supply dispute with a key vendor. ITG Investment Research analyst Jeffrey Toohig said, "The challenges the merchant faces go beyond the balance sheet and make a recovery all the more challenging in this evolving environment." Its stock has slid from a $32 peak six years ago to just pennies now on the pink sheets. It got delisted two weeks ago.