What Is It That Aeropostale Is Applying For Bankruptcy Protection?

Aeropostale has brought H&M to the federal court of New York, accusing the H&M side of using 87 brands such as Live Love Dream and Aero without the consent of Aeropostale to cause infringement.

Teenagers Clothes & Accessories Brand Aeropostale is filing for bankruptcy protection. From Reuters, youth clothing chain brand Aeropostale filed for bankruptcy protection last Wednesday, mainly due to a serious annual loss of consumers to fast fashion and the transfer of electricity supplier competitors.

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

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.

According to research firm Conlumino CEO Neil Saunders, "according to the Chapter 11 bankruptcy regulations, Aeropostale may be merged by a smaller but larger profit brand, but this does not solve the market related problems." 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 time and space for the company to reorganize, but it does not, in itself, 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 pointed out that online retailers and fast fashion retailers such as H&M and Inditex's Zara 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 fast fashion trends.

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 operates 739 stores in 50 states, with assets ranging from US $100 million to US $500 million, with liabilities ranging from $1 to US $500 million.