Teen apparel retailer gets final approval for DIP financing

Aéropostale has received final approval for $160 million in debtor in-possession financing provided by Crystal Financial LLC.



The retailer said the financing, combined with its operating cash flow, will allow the company to meet its financial commitments and enable Aéropostale to focus on completing its restructuring process, confirming a plan of reorganization and emergence from Chapter 11 during the third quarter of 2016.



"We are pleased that the Court has approved our DIP financing," said Julian Geiger, CEO. "We are looking forward to emerging from this process as a leaner, more efficient business and firmly believe that we will be well-positioned to compete and succeed in today's retail environment."



Aéropostale filed Chapter 11 on May 4, 2016. The chain said it filed in an effort to optimize its store footprint, renegotiate burdensome contracts, resolve its ongoing disputes with Sycamore Partners and achieve long-term financial stability.