Report: Bankrupt teen apparel chain in negotiations with Versa Capital

Aeropostale is negotiating a potential sale to private equity firm Versa Capital Management LLC, Reuters reported. Versa specializes in distressed investments.



In court papers filed at the end of last week,the retailer said it has been in discussions with Versa regarding a possible stalking horse bid at the chain’s bankruptcy auction later this month. The bid by Versa could include a cash payment for Aéropostale’s inventory, and the assumption of more than 500

store leases, with “continued employment for thousands of store-level and corporate employees.”



Aeropostale filed for Chapter 11 bankruptcy protection in May 2016. The company listed $390 million in debt and about $354 million in assets in its Chapter 11 petition.