Time has run out for the popular teen retail brand, Aéropostale, which had to file for bankruptcy on Wednesday after losing money for 13 consecutive quarters.
The company issued a statement saying that it would be closing 113 of its United States stores as well as another 41 in Canada. The company hoped these cutbacks would help it to “achieve long-term stability.”
Aéropostale is a mostly mall-based retailer of clothing and accessories targeted mostly for teenagers.
The retailer filed for Chapter 11 bankruptcy and declared $354 million in assets while its debts totaled $390 million.
The company stated that it had secured a loan from Crystal Financial LLC in the sum of $160 million and hoped that it would re-emerge from bankruptcy within the next six months after renegotiating contracts and resolving a dispute with former investor Sycamore Partners.
The company also said that it would continue shopping itself to potential buyers and any sale would be announced within the next six months.
Aéropostale has been in financial difficulty for a while, with declining sales that accelerated recently. Sales were down 16 percent in the most recent quarter alone.
Here are all the U.S. stores Aéropostale is closing https://t.co/aV71CbzO00
— Fortune (@FortuneMagazine) May 5, 2016
Stores put steep discounts into effect, but it did not help the company from hemorrhaging money. The company hoped this setback will only be temporary … but in Obama’s America, this could mean permanent “out of business” signs on even more of the retailer’s locations soon.
This economy is truly suffering, and Obama’s anti-capitalism plans have essentially forced many companies to close their doors.
Hopefully our next president can fix this mess.
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