Saturday 18 September 2021

Uncertainty Looms Over Aeropostale’s Future in Costa Rica

Paying the bills

Latest

What are we celebrating?

QCOSTARICA - From the gallows humor department is the...

Sala IV rejects covid patient’s claim for Caja to pay the cost of a private hospital

QCOSTARICA - A claim made by a family against...

Finally, migrant population in Costa Rica will be vaccinated against covid-19

QCOSTARICA - After complaints raised by migrants because they...

Costa Rica is the Main Exporter of Palm Oil in 2020

QCOSTARICA - In 2020, Costa Rica was the largest...

Uruguay considers allowing tourists to buy marijuana

Q24N - The first country in the world to...

Today’s Vehicle Restriction September 18: “ODD” ending plates CANNOT circulate

QCOSTARICA - Starting today, September 18, we go back...

500 Intel drones illuminated the night of celebration of the Bicentennial of Costa Rica

QCOSTARICA - During the celebration of the Bicentennial of...
Paying the bills

Share

AeropostaleQBUSINESS – The fate of Aeropostale’s store in Costa Rica remains unclear after the U.S. teen apparel retailer filed for bankruptcy on Wednesday (May 4).

For the time being, however, it will be business as usual in Costa Rica.

On Wednesday Aeropostale Inc. filed for Chapter 11 bankruptcy protection in a New York court,  succumbing to years of losses as shoppers moved on to fast-fashion retailers and online competitors.

- Advertisement -

The company said it expects to emerge out of bankruptcy within six months with a resolution of its disputes with former shareholder Sycamore Partners, which had thrown a lifeline of US$150 million to the retailer in 2014.

“Aeropostale will likely emerge from Chapter 11 as a leaner entity with a smaller, but largely profitable, store base…but it does not solve the issue of relevance to the market,” said Neil Saunders, chief executive of research firm Conlumino.

The mall-based retailer said it would close 113 U.S. stores and all 41 stores in Canada.

“Rethinking the brand proposition is key to improving prospects. Chapter 11 buys Aeropostale time and space to undertake this rethink. In itself does not provide a long-term solution,” Saunders said.

Online retailers and fast-fashion retailers such as H&M, Forever 21 and Inditex’s Zara have posed a threat to traditional apparel retailers, but American Eagle Outfitters Inc and Abercrombie & Fitch Co have managed to turn around their businesses by controlling inventories and responding faster to changing fashion trends.

- Advertisement -
Paying the bills
Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Subscribe to our stories

To be updated with all the latest news, offers and special announcements.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.