Aeropostale Inc. will close its stores at Northgate Mall in Chattanooga and Bradley Square Mall in Cleveland, Tenn., as part of a cost-cutting plan the teen retailer is seeking under the protection of the federal bankruptcy court.
Aeropostale filed for Chapter 11 bankruptcy protection on Wednesday, the latest in a wave of teen retailers that have struggled to adapt to changing fashion trends. The New York-based apparel company said it will close 113 of its 739 stores in the U.S. and all 41 of its stores in Canada. U.S. store-closing sales are expected to start this weekend.
The retailer will continue to operate stores at Hamilton Place Mall in Chattanooga and at Walnut Square Mall in Dalton, Ga. Aeropostale said it plans to emerge from Chapter 11 as a “standalone enterprise,” with fewer stores and increased operating efficiencies.
CBL & Associates Properties, the Chattanooga-based mall developer and manager, leases retail space in its shopping malls for 84 Aeropostale outlets. Of the stores with CBL leases, nine are scheduled to close, according to bankruptcy filings entered in court Wednesday.
In a statement, Aeropostale Chief Executive Julian Geiger said the company has “chosen to take more decisive and aggressive action to create a leaner, more efficient business that is well-positioned to compete and succeed in today’s retail environment.