Aéropostale Inc. Files for Chapter 11 Bankruptcy, Will Close 154 Stores

Aéropostale will close 113 U.S. locations, as well as all 41 stores in Canada. Aéropostale will close 113 U.S. locations, as well as all 41 stores in Canada.

New York City — After losing money for 13 consecutive quarters, teen apparel retailer Aéropostale Inc. (OTCQX: AROP) has filed for Chapter 11 Bankruptcy protection.

Aéropostale will close 113 U.S. locations, as well as all 41 stores in Canada, and could announce more store closures at a later date. Of the 154 stores closing, 117 lost money last year, and the rest generated little profit. Store closing sales are scheduled to begin in the United States during the weekend of May 7-8, and in Canada during the week of May 9.

The company plans to “emerge from the Chapter 11 process within the next six months as a standalone enterprise with a smaller store base, increased operating efficiencies and reduced SG&A expenses,” according to a press release from the company. Any sale of the company would be announced within the next six months.

— Haisten Willis

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