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Photo credit: Aéropostale
Aéropostale has filed for bankruptcy protection and will close all 41 Canadian stores, on top of 113 US locations being shuttered. CEO Julian Geiger said while the apparel retailer’s recent merchandising repositioning had “started to gain traction,” ripple effects of an ongoing dispute with its second-largest supplier (MGF Sourcing US, an affiliate of Sycamore Partners) put "substantial strain” on liquidity while also “preventing us from realizing the full benefits of our turnaround plans.” The company said it intends to emerge from the Chapter 11 process in six months with a smaller store base, increased operating efficiencies and reduced expenses.
