Aéropostale Expected to File Bankruptcy

Aéropostale (New York) has recently been holding a number of meetings which are expected to result in the retailer filing for Chapter 11 bankruptcy protection, reports Women’s Wear Daily. The filing is expected to come before for the retailer’s May rent payments are due.

Part of the retailer’s financial difficulty can be traced back to a sourcing dispute it has had with Sycamore Partners’ (New York) MGF Sourcing division. The retailer claims that if shipping delays from the dispute continue, operating losses could be impacted by up to $8 million.