Aeropostale is not going to appeal the delisting determination

Aeropostale is not going to appeal the delisting determination

Struggling teen apparel retailer Aeropostale has been delisted by the New York Stock Exchange (NYSE) due to its "abnormally low" trading price, amid reports it is preparing to file for Chapter 11 bankruptcy proceedings. 

The company, which last month revealed it was exploring strategic options, said it does not intend to appeal the delisting decision as the NYSE also suspended trading in its common stock. 

Instead, its shares will be traded on the OTCQX Best Market, which is operated by OTC Markets Group Inc, under the symbol 'AROP'. The retailer said the transition to the OTCQX market does not affect its business operations, and does not change its public reporting requirements with the US Securities and Exchange Commission. 

The news comes amid reports Aeropostale could file for Chapter 11 bankruptcy as soon as this month. According to Bloomberg, the retailer is working out a loan to finance its operations during the bankruptcy process, while a deal to avoid a filing or find a buyer also could still emerge.

Last month,the group saw its fourth-quarter net loss widen to US$21.7m from $13.5m in the same period a year ago. Sales declined 16.1% to $498m from $593.8m. The company's full-year net loss narrowed to $136.9m from $206.5m, while sales dropped 18% to $1.51bn. 

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