New York City — Aéropostale, Inc. has taken the next steps in its ongoing business transformation by filing voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code. The company has posted an initial store closure list of 113 U.S. locations, as well as all 41 stores in Canada.
The company expects to use the Chapter 11 process to optimize its store footprint, access additional tools to shed or renegotiate burdensome contracts, resolve its ongoing disputes with Sycamore Partners, and achieve long term financial stability.
The company intends to emerge from the Chapter 11 process within the next 6 months as a standalone enterprise with a smaller store base, increased operating efficiencies and reduced SG&A expenses. The company is also continuing its previously announced sale process; any potential sale would be expected to be completed within the next 6 months.
“We have chosen to take more decisive and aggressive action to create a leaner, more efficient business that is well-positioned to compete and succeed in today’s retail environment,” says Julian Geiger, chief executive officer.
Store closing sales are scheduled to begin in the United States during the weekend of May 7-8, 2016, and in Canada during the week of May 9, 2016.
Additional information can be found at www.ARORestructuring.com. Suppliers and landlords may email suppliers@aeropostale.com or landlords@aeropostale.com.
Aéropostale is advised in this transaction by Weil, Gotshal & Manges LLP, Stifel Financial Corp. and FTI Consulting.
Aéropostale, Inc. is a specialty retailer of casual apparel and accessories, principally serving young women and men through its Aéropostale® and Aéropostale Factory™ stores and website and 4 to 12 year-olds through its P.S. from Aéropostale stores and website. As of May 1, 2016, the company operated 739 Aéropostale® stores in 50 states and Puerto Rico, 41 Aéropostale stores in Canada and 25 P.S. from Aéropostale® stores in 12 states. In addition, pursuant to various licensing agreements, the company’s licensees currently operate 322 Aéropostale® and P.S. from Aéropostale® locations in the Middle East, Asia, Europe and Latin America.
SOURCE: Aéropostale, Inc.