Aeropostale Forced To Auction Assets As Part Of Bankruptcy
Failed retailer Aeropostale is getting ready to sell its assets, and it isn’t happy about it. The company is considering bringing claims against the private equity firm it says forced it into bankruptcy.
Aeropostale said in court papers that “reorganization on a standalone basis is not feasible” and instead it must hold an auction, passing any proceeds along to creditors, Bloomberg reports. The company also asserts private equity firm Sycamore Partners forced it into bankruptcy by using a supplier to trigger the filing, and is reviewing 11,000 pages of depositions to decide whether to pursue claims.
Aeropostale hopes to find a lead bidder by Aug. 15, and maybe even hold an auction on Aug. 22 if there is enough competitive interest in its assets. [Bloomberg]