Report: Teen apparel retailer close to filing Chapter 11

Aeropostale Inc. preparing to file for Chapter 11 bankruptcy as soon as this month, Bloomberg reported, citing people familiar with the matter.



Aeropostale has recorded three consecutive years of losses as its struggles to deal with a teen audience whose spending tastes now favor fast-fashion giants such as H&M as well as online retailers. The chain operates some 800 stores nationwide.



In March, Aeropostale announced plans to evaluate strategic alternatives, including a sale of the company. And last week it said it was delaying the filing of its annual report while it explores its options.