Aeropostale Reports Loss for the Thirteenth Straight Quarter; Exploring Strategic Alternatives Including Sale
Aeropostale Inc., the U. S teen apparel retailer posted its thirteenth consecutive quarterly loss and said it was exploring strategic alternatives including even a sale option.
Shares of the company dropped fifty two percent during the after-hours trading, following an announcement from the company that it would most probably face liquidity constraints in case it cannot resolve a supply dispute with one of its key vendor.
However, Aeropostale did give any details regarding the dispute with MGF. Aeropostale's Chief Executive, Julian Geiger said the dispute was hurting "short-term visibility" of the company. Geiger said, the company will be focusing on the lower-priced factory concept stores.
MGF, an affiliate of Sycamore Partners a private-equity firm had given a $150 million lifeline to the U. S apparel retailer struggling for survival in 2014. It previously owned an eight percent stake in Aeropostale.
Jeff Toohig an analyst with ITG said, "Sycamore is the obvious choice for a buyer. But given the loans outstanding and the potentially violated sourcing agreement ... one imagines Sycamore will be able to take control of ARO without paying much if anything before too long. That is, if they still want it."
Aeropostale reported sixteen percent drop in quarterly sales mainly as it offered heavy discounts to attract shoppers and close the stores that had turned unprofitable.
- New ET7 Electric Sedan Brings NIO Closer To Fully Autonomous Driving Capability
- Massachusetts Governor Baker’s 25% capacity rule is death warrant for Casinos: Richard McGowan
- San Diego Tribal Casinos refute report blaming them of spreading COVID-19
- Tennessee reports robust $131.4 million sports betting handle in November
- Nikola Motor electric waste management truck deal with Republic Services cancelled