Aeropostale said to prepare for Chapter 11 bankruptcy
The company is looking to reorganize under Chapter 11, said the people, who declined to be identified because the matter isn’t public. Aeropostale is trying to work out a loan to finance its operations during the bankruptcy process, according to the people, Bloomberg reports.
A deal to avert a filing or find a buyer also could still emerge, they said.
Aeropostale’s trip to bankruptcy court would follow three straight years of losses and a feud with its main lender, Sycamore Partners, which also owns a key clothing supplier.
The New York-based retailer has struggled to hang on to teen consumers, who have shifted to online shopping or chains like H&M.
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