Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Aéropostale Files for Chapter 11 Bankruptcy
Author: Joel R. Glucksman
Date: June 22, 2016
Key Contacts
Back
Aéropostale files Chapter 11
Clothing retailer Aéropostale recently announced that it had filed for Chapter 11 bankruptcy protection. According to a report in Fortune, the company filed its bankruptcy petition late last month, even as it attempted to find a buyer.
Aéropostale decides to seek bankruptcy protection
Bloomberg reported that the company filed for Chapter 11 bankruptcy protection to lighten its staggering debt load. In the report, Aéropostale will seek to continue operations with a strategic sale to a buyer that assumes its debt liabilities.
Aéropostale’s financial struggles lead to insolvency
Aéropostale’s current financial issues have intensified for the last four years as its teen consumer demographic has sought out other clothing retailers. As a result, its sales have fallen from $2.29 billion in 2012 to $1.5 billion last year. Business Insider reported that its sales in March fell 6.7 percent over the same month last year.
Aéropostale’s liquidity issues also arise from a late 2015 dispute with one of its main vendors, MGF Sourcing US, an affiliate of Sycamore Partners, that loaned it $150 million for an 8 percent ownership stake in the company. Due to this dispute, Fortune reported that the company did not receive the loan and is currently hemorrhaging funds without a plan to control future costs.
As a result, the company’s stock price recently fell to 15.1 percent, a record low after a 27.7 percent drop. Fortune reported that this prompted the New York Stock Exchange to halt all trading in the company and de-list it from the exchange after it traded under $1 for an extended period. Aéropostale now has a market value of $30 million, a significant reduction from $3 billion in 2010.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
So what does the future hold for Aéropostale? Only time will tell. Otherwise, for more articles on retail companies filing for Bankruptcy, check out:
- Karmaloop Inc. files for Chapter 7 Bankruptcy Protection
- American Apparel Files for Chapter 11 Bankruptcy Protection
- Coldwater Creek, Inc. may file for Bankruptcy
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
One Big Beautiful Bill: New Tip Income Tax Rules Employers & Workers Need to Know
Part 2 – Tips Excluded from Income Certain employees and independent contractors may be eligible to deduct tips from their income for tax years 2025 through 2028 under provisions included in the One Big Beautiful Bill. The deduction is capped at $25,000 per year and begins to phase out at $150,000 of modified adjusted gross […]
Author: Scott H. Novak
One Big Beautiful Bill: New Overtime Tax Rules Employers and Employees Need to Know
Part 1 – Overtime Pay and Income Tax Treatment Overview This Firm Insights post summarizes one provision of the “One Big Beautiful Bill” related to the tax treatment of overtime compensation and related employer wage reporting obligations. Overtime Pay and Employee Tax Treatment The Fair Labor Standards Act (FLSA) generally requires that overtime be paid […]
Author: Scott H. Novak
New York’s FAIR Business Practices Act: What the New Consumer Protection Measure Means for Your Business
In 2025, New York enacted one of the most consequential updates to its consumer protection framework in decades. The Fostering Affordability and Integrity through Reasonable Business Practices Act (FAIR Act) significantly expands the scope and strength of New York’s long-standing consumer protection statute, General Business Law § 349, and alters the compliance landscape for New York […]
Author: Dan Brecher
How to Reduce Legal Risk as Your New Jersey Business Grows in 2026
For many New Jersey businesses, growth is a primary objective for the New Year. However, it is important to recognize that growth involves both opportunity and risk. For example, business expansion often results in complex contracts, an increased workforce, new regulatory requirements, and heightened exposure to disputes. Without proactive planning, even routine growth can lead […]
Author: Ken Hollenbeck
Crypto Investor Protection: SEC and CFTC Enforcement Trends
Crypto investor protection continues to evolve, with the SEC and CFTC investing resources and coordinating more closely to uphold regulatory standards. Whether you’re a retail investor, an institutional trader, or part of a crypto startup, understanding enforcement trends is essential for navigating this dynamic and high-stakes regulatory environment. Crypto Is No Longer the Wild West […]
Author: Dan Brecher
New Jersey’s Next Manufacturing Tax Credit: Stability Secured, Timing Matters
A Settled Regulatory Environment Enables Confident Capital Planning New Jersey’s new manufacturing incentive program, Next New Jersey Manufacturing Program, enters 2026 with something uncommon in economic development these days: policy stability. The statute is enacted, New Jersey Economic Development Authority’s (“NJEDA”) rules are adopted, and the application portal is open. With the election outcome settled, […]
Author: Michael J. Sheppeard
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.