US apparel retailer Aeropostale approaches private equity firms to explore exit -Bloomberg
Amid pressure from investors to sell itself, Aeropostale Inc contacted at least two private equity groups, according to sources cited by Bloomberg in a report on Tuesday. The unnamed sources also said the clothes retailer is presently exploring its strategic options, wrote Reuters.
The New York-based firm also approached investment banks to ask for help on how to deal with pressure from Crescendo Partners, an activist investor. The sources said the retailer also wants to gain assistance on running a sale process, the report detailed.
Sources told Bloomberg that the youth-apparel store is not yet in discussions for the said sale, the report added.
In November, Crescendo Partners urged the clothes retailer to sell itself. The investor is just one of the investors that are frustrated with the downward spiral of the company's fortunes, the report noted.
Aeropostale posted losses for four consecutive quarters. The company has been trying to sell more fashionable clothes, but the new offerings had little success in restoring its fortunes, Reuters reported.
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