Casual and active apparel retailer Aeropostale will close its loss-making Jimmy'Z concept in the second quarter of fiscal 2009.

The closure of the company's 11 Jimmy'Z stores follows a review of the current macro-economic condition and the performance of the concept, which was losing around $8m a year, a statement said.

Aeropostale said it will now focus on the growth of its core business, with its next US retail concept to target a younger demographic.

Julian R Geiger said: "We believe that discontinuing the Jimmy'Z concept will enable us to focus on businesses which align with our core competencies."

The company expects to incur $5.0m in pre-tax costs related to lease terminations, inventory liquidation, and employee retention and severance obligations during the first half of fiscal 2009.