Aeropostale Inc (AROP) has announced that it’s filed for Chapter 11 bankruptcy protection.
Aeropostale filed for bankruptcy in the the United States Bankruptcy Court for the Southern District of New York. It plans to come out of the bankruptcy in six months with less stores and better operating efficiency.
AROP has already announced plans to close 113 stores in the United States and another 41 locations in Canada. It plans to continue normal operations at its stores that aren’t being closed.
Aeropostale is also planning to use its time in bankruptcy to sort out problems it’s had with Sycamore Partners and “shed or renegotiate burdensome contracts.” It’s also still considering a sale of the company.
Follow this link to learn more about how Aeropostale went down the path to bankruptcy.
AROP shares were down 21% as of Noon Wednesday.
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