Claiming that consumers have changed their shopping habits, teen retailer Aeropostale has officially filed for Chapter 11 bankruptcy. They are following in the footsteps of other teen retailers who saw wild success in the late 90s and early 00s, but could not keep up with the downfall of the commercial shopping mall.
Teens nowadays are flying to fast-fashions stores like HandM, Zara, and Forever 21. Stores like Wet Seal, Delia’s, and now Aeropostale are not able to stand out among the crowd and cater to Millennial’s shopping preferences.
For Aeropostale, many of their brick and mortar stores are in small, regional shopping malls. It is no secret that mall foot traffic has significantly decreased through the rise of online shopping, and Aero just could not keep up.
But this action was not for lack of trying. For months, Aeropostale executives have been working to turn around their mounting losses. August 2014 brought them a new CEO and CFO, and in January of this year, they announced that they would eliminate 13% of their corporate workforce to cut costs.
Focusing on the ‘flirty tomboy girl’ demographic, Aeropostale designers changed their ideas to promote a more classic look in comparison to the on-trend clothing promoted in the fast-fashion stores.
But these efforts have not given the results Aeropostale was looking for. In their most recent earnings report, the company reported a 16% decrease in sales, with a net loss of 22 million. It was taken off the stock floor at the NYSE, as it’s most recent shares were coming in at just pennies per share.
Now, what is going to happen to all the commercial real estate Aeropostale is leaving behind? Contacting commercial real estate companies will help you with all steps of the property management if you are interested in buying the properties. From tenant representation to receivership services, these companies will make sure all your bases are covered when it comes to buying commercial storefronts.
They are also helpful if you are interested in buying a family home or an apartment. The primary reason for purchasing a home in 2015 was the desire to own their own home, and these first-time buyers comprised one-third of the American housing market. As most people take out loans when they buy their first home, or refinance once they have equity, real estate firms can be incredibly helpful resources for anyone looking for help when buying real estate.
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