Aeropostale could file for bankruptcy this month

Endaba Group

According to reports, Aeropostale is preparing to file for bankruptcy as soon as this month. This would allow the teen apparel retailer to swiftly close their under performing stores, as well as reorganise and work on financing to fund their operations. Aeropostale have not seen the same success as their competitors Abercrombie & Fitch and American Eagle Outfitters who have both recently reported a rise in their sales. The shift in consumer habits from offline to online, as well as millennials spending their money on experiences as opposed to clothes has played a part in Aeropostale’s stock falling 28%, adding to its 94% drop in the past 12 months. The retailer reported that Q4 same-store sales, including ecommerce, fell 6.7% year on year and the company closed 13 stores in this quarter.