Massive clothing retailer Aéropostale announced the company will be closing 113 stores in the United States and each of its 41 stores in Canada as part of its Chapter 11 bankruptcy, according to the company’s website.
As part of this effort to position the company for long-term success, Aéropostale is reviewing its leases and other contracts to ensure they are competitive with current market dynamics. Closings are set to begin May 7, including the San Angelo store.
“While initiatives such as the implementation of our two-chain factory and mall strategy and our merchandise re-positioning have started to gain traction, the ripple effects of an ongoing dispute with our second-largest supplier put substantial strain on our liquidity while also preventing us from realizing the full benefits of our turnaround plans. As a result, we have chosen to take more decisive and aggressive action to create a leaner, more efficient business that is well-positioned to compete and succeed in today’s retail environment,” said Julian Geiger, Chief Executive Officer.
Aéropostale operates more than 800 stores nationwide.
On the company’s website, Geiger stated, “We appreciate the loyalty and support of our customers, employees and business partners as we complete this process.”
The company has also filed a series of motions that, pending court approval, will allow it to pay employee wages and benefits without interruption, honor all gift cards in full, uphold the terms of its international licensing agreements and pay suppliers in the normal course of business. The company said in a release, these motions are typical in the Chapter 11 process and are generally heard in the first days of the case. The company separately expects to use provisions in the bankruptcy code that require suppliers to meet the terms of their pre-existing contracts.