Struggling teen apparel retailer Aéropostale filed for Chapter 11 bankruptcy protection on Wednesday, falling victim to years of losses as fast fashion chains like Forever 21 ate into its market share, and long time rivals Abercrombie & Fitch (AND) and American Eagle Outfitters (AEO) proved better at adapting to the changing tastes of young shoppers.
Aéropostale is going through the bankruptcy process in part to shed unprofitable stores and trim down its fleet, as those locations have been a major drain on its delicate finances.
The retailer announced it would close 154 stores (113 in the U.S. And 41 in Canada). Some 117 of those lost money last year, and the rest generated little to no profit.
Aéropostale’s strategy for getting back on its feet is “to right-size their operations by closing unprofitable stores. Such closures will help stem the Debtors’ significant cash burn, increase the Debtors’ liquidity, and allow the Debtors to focus their reorganization efforts around a smaller footprint of more profitable store,” the company said in its bankruptcy filing.
The company joins Wet Seal, Quicksilver, Pacific Sunwear, Sports Authority, and Vestis Retail (parent of Eastern Mountain Sports) among the ranks of retailers seeking bankruptcy protection from the courts in the last 16 months.
Here are the U.S. Stores Aéropostale is closing, taken from the company’s filing this morning.
