Report: Teen retailer on brink of Chapter 11

Aeropostale will reportedly file for bankruptcy protection this week and subsequently close more than 100 of its 800 stores, according to The Wall Street Journal.



The struggling teen apparel retailer plans to reorganize under a Chapter 11 filing this week ahead of May rent payments, the report said. On Aeropostale has been struggling for some time. The chain 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.



In March, Aeropostale announced plans to evaluate strategic alternatives, including a sale of the company. On Friday, April 22, the New York Stock Exchange suspended trading of the retailer’s stock with immediate effect, due to an "abnormally low" trading price. Aeropostale did not appeal the delisting, and said its shares will instead be traded on the OTCQX Best Market, an over-the-counter market operated by OTC Markets Group Inc. The new ticker is "AROP."