US: Aeropostale "considering private equity deal"
Aeropostale faces pressure from investors to sell
Struggling teen apparel retailer Aeropostale is understood to be considering raising capital from private equity firms as it mulls ways to shore up its balance sheet.
According to Reuters, the company is working with investment bank Barclays to study its options, four people familiar with the matter told the publication.
If Aeropostale does so, it may opt for a private investment in public equity (PIPE) transaction of "a few hundred million dollars", Reuters reported. Such a transaction is often used by small and mid-cap companies that may have difficulty raising capital in public markets.
No decision has yet been made, however, and Aeropostale is "considering other options that may include a sale of the entire company", sources are understood to have said.
The company faces pressure from investors, including Crescendo Partners, to sell the company. Last month, the firm was reported to have contacted at least two private equity firms about a possible sale.
In December it swung to a third-quarter loss of US$25.6m and reported a 15% decline in comparable sales.
Aeropostale did not return a request for comment at the time of going to press.
Private equity firm Sycamore Partners has indicated it is interested in purchasing troubled US apparel retailer Express Inc....
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