Aeropostale

A controversial labor practice employed by some retailers is coming under increased scrutiny by U.S.regulators.  

In a not unexpected move, beleaguered teen apparel retailer Pacific Sunwear of California Inc. filed for Chapter 11 bankruptcy court protection.

In a court filing on Thursday in Delaware, the Anaheim, California-based retailer listed assets in the range of $50 million to $100 million and liabilities of between $100 million and $500 million. It listed Simon Property Group and Nike Inc. among its top creditors. The chain named RCS Real Estate Advisors, New York, as its real estate advisor.

The rise of fast-fashion, changing fashion tastes and online commerce may be claiming another teen apparel retailer.

Pacific Sunwear of California Inc. is preparing to file for Chapter 11 bankruptcy, according to Bloomberg, which cited people with "knowledge of the situation.” The report said the filing could occur as early as next week.

Aeropostale announced on Friday that the New York Stock Exchange had accepted the company's plan for continued listing, subject to quarterly review.

In an effort to control cost, Aeropostale is reducing its corporate headcount by 13% and CEO Julian Geiger is relinquishing one million stock options that will be doled out to others for retention purposes.

The mall-based specialty retailer of casual apparel for young women and men plans to eliminate 100 corporate position by the end of its 2015 fiscal year and said the move would save between $35 million and $40 million annually.

The 127-year old family owned Belk department store chain is family owned no more, although one of the founder’s descendants remains in place as CEO.

The private equity firm Sycamore Partners completed its previously announced acquisition of the 296 unit Belk chain on Dec. 10, thus beginning a new chapter for what had been the nation’s oldest privately held department store retailer.

A private equity group better known for investing in established companies is creating a new dollar store brand after acquiring 330 Family Dollar stores from Dollar Tree.

Dollar Tree acquired Family Dollar earlier this year and to satisfy federal regulators, the company agreed to divest 330 Family Dollar stores. The acquiring company is a newly created portfolio company of the private equity firm Sycamore Partners called Dollar Express.

Aeropostale believes its brand is strong enough that shoppers at other retail outlets will want to buy licensed products bearing its name.

The teen specialty retailer and operator of roughly 800 stores signed a domestic licensing agreement for home textiles with Himatsingka America. Terms of the deal call for Himatsingka to design, manufacture and distribute bedding and bath linens using the Aeropostale label for department stores, big-box retailers and wholesale channels across North America.