Reports 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.
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.