New York – Aeropostale Inc. is reportedly considering trying to raise private equity capital. According to Reuters, four anonymous sources said Aeropostale is working with the investment bank Barclays plc to consider options including private equity capital as well as a sale of the company.
If Aeropostale decides to pursue private capital, the retailer may reportedly execute a private investment in public equity (PIPE) transaction worth a few hundred million dollars. PIPE transactions, frequently used by companies with small or mid-sized market capitalization, generally provide stock at a discount to private equity investors. Neither Aeropostale nor Barclays commented on the article.