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.
Synopsis Canadean's "Aeropostale, Inc. : Retailing - Company Profile, SWOT & Financial Report" contains in depth information and data about the company and its operations. The profile contains a compa...
Foreign brands of adult apparel are the ones most actively introduced in previous years. However, in 2013, there was an increase in the ventures of local companies to bring international childrenswear...
- Yuan devaluation impact mixed for garment firms
- Will Vietnam struggle with impending trade deals?
- Nicaragua apparel and shoe firms to double in size
- The new age of disruption on apparel production
- China devaluation: what’s the big deal?
- H&M scaling up living wage effort to key suppliers
- Myanmar approves first minimum wage
- US Q2 in brief: G-III, Shoe Carnival, J Crew
- EU clothing buyers should brace for higher prices
- PVH “well-positioned” in China despite headwinds
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, and Contact Details
- Ethiopia – the emerging textile and clothing industry
- Myanmar's Garment Sector in 2015 - now with updated members' directory
- Global market review of lingerie - forecasts to 2020
- Global market review of denim and jeanswear – forecasts to 2020