Electricity Providers And Other Huge Impact Aeropostale Bankruptcy

In today's fast fashion brand and electricity supplier's active activities, the youth clothing brand Aeropostale has applied for bankruptcy protection under such impact.

Aeropostale is famous in America. Campus The brand was once the most popular youth clothing brand in the United States, and its strong sales force pressed Nike, Adidas and other sports brands. It once dominated the clothing market of young people in the United States with American Eagle Outfitters and Abercrombie & Fitch.

According to court documents, Aeropostale said the company plans to borrow $160 million from Crystal Financial LLC in order to maintain cash flow during bankruptcy. The company said it expected to resolve the dispute over bankruptcy in six months with its former shareholder, Sycamore Partners, which invested $150 million in 2014 to save the company from fire.

Conlumino CEO Neil Saunders, a research firm, said: "according to the bankruptcy code of Chapter 11, Aeropostale may be small but profitable. brand Being merged, this does not solve the relevant problems of the market. "

The fashion retailer said it would close 113 US stores and all 41 Canadian stores would be closed. Neil Saunders said that reconsidering brand positioning is the key to improving performance expectations. The Chapter 11 charter provides the company with time and space for restructuring, but in itself does not provide a long-term solution.

The predicament of the youth clothing market has triggered the trend of bankruptcy of famous american apparel retailers. The brands that have filed for bankruptcy in the past few years include American Apparel, Quiksilver and Sports Authority.

Some analysts have pointed out that online retailers and fast fashion retailers such as H&M and Inditex pose a threat to traditional clothing retailers. However, American Eagle Outfitters and Abercrombie & Fitch have begun to reverse the dilemma by controlling inventory and flexible and fast fashion trends. Zara

Aeropostale was founded in 1980s by R.H. Macy's & Co, and was first launched in 2002, but its New York stock exchange has been delisted in April. According to May 1st data, the company is in U.S.A The 50 states operate 739 stores, with assets ranging from $100 million to $500 million and liabilities ranging from $1 to $500 million.