Aéropostale to close all 41 Canadian stores as it files for bankruptcy in U.S.
Teen retailer Aéropostale plans to close all 41 of its Canadian stores, along with 113 of its 739 U.S. stores, as the company filed for Chapter 11 bankruptcy protection in New York court on Wednesday.
The company said store-closing sales are scheduled to begin in the U.S. during the weekend of May 7-8, and in Canada during the week of May 9.
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"The ripple effects of an ongoing dispute with our second largest supplier put substantial strain on our liquidity while also preventing us from realizing the full benefits of our turnaround plans," said company CEO Julian Geiger in a statement.
"As a result, we have chosen to take more decisive and aggressive action to create a leaner, more efficient business that is well positioned to compete and succeed in today's retail environment," Geiger said.
Aéropostale said it intends to emerge from the Chapter 11 process within the next six months as a smaller company.
The firm is the latest U.S. teen-oriented retailer to file recently for bankruptcy protection, joining a list that includes American Apparel, Wet Seal and Pacific Sun.