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Aeropostale Closing 113 Stores, Including Paducah

Aeropostale Closing 113 Stores, Including Paducah
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By The Associated Press/West Kentucky Star Staff
May. 04, 2016 | NEW YORK, NY
By The Associated Press/West Kentucky Star Staff May. 04, 2016 | 08:36 PM | NEW YORK, NY
Aeropostale, once the vibrant epicenter of the U.S. mall scene, is seeking Chapter 11 bankruptcy protection and closing 20 percent of its stores in North America.

The New York company said Wednesday that it is closing 113 of its 739 U.S. Stores, including the Paducah store in Kentucky Oaks Mall, and all 41 locations in Canada. Going-out-of-business sales at those U.S. stores will begin this weekend.

Aeropostale expects to emerge from bankruptcy protection within six months as a smaller company after renegotiating contracts and resolving an ongoing dispute with the investment firm Sycamore Partners, a major shareholder that pushed through changes in company leadership.

Once worth almost $2.6 billion, Aeropostale’s market capitalization has fallen to about $2 million. The company’s shares traded for more than $30 six years ago, when annual sales exceeded $2 billion. Two weeks ago, it was delisted from the New York Stock Exchange with shares having failed to break the $1 barrier since last year. Shares on Wednesday were trading over the counter for less than 3 cents.

The company early this year said that it would cut expenses by $35 million to $40 million annually and trimmed its corporate staff by 13 percent, about 100 jobs.

Aeropostale has secured a commitment for $160 million in debtor-in-possession financing from Crystal Financial LLC, which will allow it to continue operations. It also filed a series of motions that would allow it to pay employees, as well as honor customer gift cards and pay suppliers, if approved by the court.

On the Net:

Aeropostale's Full List of Store Closings
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