Aeropostale to close area stores, filed bankruptcy

Staff report

BOARDMAN

The Mahoning Valley’s two malls are losing their A ropostale stores after the retailer announced its bankruptcy.

The A ropostale stores in Eastwood Mall, 5555 Youngstown-Warren Road, Niles, and Southern Park Mall, 7401 Market St., Boardman, will close this month.

New York-based A ropostale filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York.

“A ropostale is reviewing its leases and other contracts to ensure they are competitive with current market dynamics,” the company said.

The company announced an initial store closure list of 113 U.S. locations, as well as all 41 stores in Canada.

Store-closing sales are scheduled to begin in the U.S. this weekend and in Canada next week.

A ropostale is a specialty retailer for casual apparel and accessories, principally serving young women and men.

The company plans to emerge from bankruptcy within the next six months “as a standalone enterprise with a smaller store base, increased operating efficiencies” and reduced expenses, it said in a statement.

In conjunction with the Chapter 11 filings, A ropostale secured a commitment for $160 million in debtor-in-possession financing provided by Crystal Financial LLC, which, combined with operating cash flow, will allow A ropostale to meet its go-forward financial commitments.

The company also has filed a series of motions that, pending court approval, will allow it to pay employee wages and benefits without interruption, honor all gift cards in full, uphold the terms of its international licensing agreements and pay suppliers in the normal course of business.