After taking a few weeks to weigh its options, Aeropostale says it won’t be able to manage a reorganization under bankruptcy, and instead is getting ready to auction off all its assets in the coming weeks. It’s also taking fire at the lender it claims pushed it into bankruptcy in the first place.
While teen retailers like Aéropostale and PacSun are going down in flames, their rivals are hunched on the sidelines, waiting to pick their bankrupted bones clean. There’s still money to be made catering to teenagers, after all, and analysts say Abercrombie & Fitch could be the one making it. [More]
The Aeropostale Bankruptcy Watch may be over. After initial reports two weeks ago that the company was considering a filing in the coming month, now experts speculate that the troubled teen retailer could file later this week. Timing is key: with 800 stores, the company would need to file before its rent for May is due. [More]
The past few years haven’t exactly treated teen retailers well: DEB, Wet Seal, and dELiA*s (although it came back as an online-only store) are just a few of the brands that have filed for bankruptcy. Another once-popular teen-focused retailer is joining that list as Aeropostale is said to be prepping its own bankruptcy filing. [More]
With the help of seven other states and the District of Columbia, New York is expanding the probe into on-call scheduling in the retail world, sending letters to 15 more retailers asking them about their use of the practice. [More]
Reader Ben was shopping at Aeropostale when he noticed a guide to the chain’s new women’s sizing hanging on the wall. He snapped a picture of it and sent it to us. “I wouldn’t say this is exactly deception, I think Aeropostale has found a rather creative way to try to sell more clothes,” he writes. Whether adjusting sizes is or isn’t deceptive is a matter for fashion industry debate, but what Aeropostale is doing isn’t creative or new. [More]