Aéropostale Canada to Close All 41 Stores in Canada After Filing for Bankruptcy!

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Aeropostale

Aéropostale Canada, once one of the top casual clothing retailers catering to teenagers, has announced today that it has filed for Chapter 11 bankruptcy protection and will therefore be closing all 41 stores in Canada and approximately 113 of its more than 700 stores in America. This decision comes after thirteen consecutive quarters reporting losses and increased competition.Screen Shot 2016-05-04 at 1.06.31 PM

This is a graph showing Aéropostale’s share price (the x-axis is the year). You can see that its shares were trading at about $30 back in 2011. After a steady decrease, and having failed to reach even $1, they are now trading for less than 3 cents.

From general experience, it’s quite clear that this was bound to happen sooner or later. Walking through an Aéropostale Canada store today is similar to walking though an Aéropostale Canada five years ago: nothing has changed. Clothing hasn’t changed, styles aren’t fashion-forward, and there’s simply no innovation taking place. With major competitors such as Forever 21 and H&M, teenagers and young adults are often choosing more modern and more inexpensive clothes. Be prepared for liquidation sales as they’re expected to start next week.

Aéropostale plans to take a more ‘aggressive action to create a leaner, more efficient business’ with its remaining locations in America.


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