Aeropostale Seeks to Auction Assets for Bankruptcy Relief
Posted on Jul 21, 2016
The teen clothing store, Aeropostale who recently filed for bankruptcy, is prepared to sell their assets and file a claim against the equity firm that drove it out of business.
Aeropostale claimed in court papers on July 15th that “reorganization on a standalone basis is not feasible.” Now they will look for a “stalking horse,” according to Bloomberg, to make the largest bid at the upcoming auction. Aero will pass the proceeds of any sale from the auction to their creditors.
The New-York based company filed for bankruptcy this past spring in May. According to the court documents, liquidation has been the only answer since the beginning of Aero’s claim.
Aeropostale hopes to find a lead bidder by August 15th and hold an auction on August 22nd. The company listed as $390 million in debt and $354 in assets after filing for Chapter 11 in May.
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