Sources close to the American fashion chain Aeropostale claim the company will file for bankruptcy later this month. The subsequent process will be used to restructure the company.
Close stores fast
Aeropostale's bankruptcy will not be a surprise to many, as the company's losses have compounded over the past three years. There is also a conflict with its biggest financial backer, Sycamore, which aggravates the situation. Back in March, the company said it would not publish its yearly results just yet, as it was investigating all the possible options. In the fourth quarter, it suffered another twenty million dollar loss.
Aeropostale currently has about 800 stores, but a bankruptcy would enable it to shut down a sizeable number of stores in a short amount of time. Allegedly, the company is also looking for a loan in order to keep afloat during the bankruptcy process.