After years of struggling with new competition in the teen market, Aeropostale Inc. will file for bankruptcy, according to Bloomberg.
The news source cited “people familiar with the matter,” who declared that the company is looking to reorganize under Chapter 11 as soon as this month. The source also said that the company may look to avoid filing and find a buyer.
Bloomberg reported that after the announcement, Aeropostale’s shares fell 28 percent to 15 cents, after already losing 94 percent in the past year. The New York Stock Exchange removed the stock following this announcement. Aeropostale announced this morning that the brand has switched its listing to the OTCQX Best Market under the symbol “AROP.”
A filing would allow the company, with more than 800 locations, to close a large number of locations in an efficient manner.