ARO Stock – Aeropostale Pops on Buyout Buzz

The retailer has posted four straight quarterly losses

   

Aeropostale 300x199 ARO Stock   Aeropostale Pops on Buyout BuzzReports that Aeropostale (ARO) may be exploring the possibility of a sale sent ARO stock up more than 3% in Wednesday morning trading.

Sources tell Bloomberg that the apparel retailer has spoken with investment banks and two private equity firms. While Aeropostale is not currently negotiating a sale, the company is said to be exploring a range of strategies, including potentially selling itself.

retail shopping display1 ARO Stock   Aeropostale Pops on Buyout Buzz
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In November, activist investor Crescendo Partners sent a letter to Aeropostale’s board demanding that the company seek a suitor. Crescendo indicated that it believes ARO stock to be worth between $14 and $16 a share. ARO stock is currently trading above $7 a share.

ARO has reported four straight quarterly losses, sending ARO stock down 37% over the past year. The company has been shuttering failing stores in a bid to stem the losses.


Article printed from InvestorPlace Media, http://investorplace.com/2014/01/aro-stock-aeropostale-pops-buyout-buzz/.

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