Amid difficult days for apparel retailers, embattled teen outlet Aeropostale as expected has filed for Chapter 11 bankruptcy protection, and plans to close 113 U.S. stores as well as 41 in Canada, according to various media reports.
The company claims it will emerge from bankruptcy in six months’ time, and renegotiate or exit “burdensome” contracts. It has been in dispute with vendor MGF Sourcing, owned by Aeropostale investor Sycamore Partners, which has demanded payment upfront rather than the usual 60-day terms.
This follows recent filings by Sports Authority, Vestis Retail Group – which owns Sports Chalet, Eastern Mountain Sports and Bob’s Stores – and PacSun, another formerly high-flying teen retailer. Many others have been dialing back their store footprints, including Macy’s and Kohl’s, while others like Nordstrom are eliminating jobs.
You can read the entire Wall Street Journal account here.