Yes, you read that right. Amongst all the brightly colored polos and bold logos, Aéropostale (our fave retailer as a teen) has officially filed for bankruptcy.
CEO Julian Geiger said, “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.” The retailer filed for Chapter 11 bankruptcy protection and plans to close 113 stores in the U.S. and 41 in Canada out of around 800 stores.
As fast fashion retailers like Topshop and Forever21 have quickly become a go-t0 for avid shoppers, Aéropostale was struggling to stay afloat the past few years. In their most recent quarter, they announced a loss of $26 million on sales of $363 million (yikes!) according to Forbes.
Similar mall-based retailers like PacSun and American Apparel have filed for bankruptcy in the past few months, while others like Abercrombie and American Eagle have made changes to keep sales up.
What are your thoughts on the recent bankruptcy? Let us know in the comments below!
xx, The FabFitFun Team
