Aeropostale filed for Chapter 11 — 13 straight quarterly losses killed the mall brand

Aeropostale was a mall-based teen apparel retailer founded in 1987 by Macy's. At its peak in the 2000s, the brand operated nearly 800 stores across the US and Canada and generated roughly $1 billion in annual revenue, positioning itself as a mid-market destination for logo-heavy casual wear aimed at teenagers and young adults.

The company's decline began when fast fashion chains — H&M, Zara and Forever 21 — mastered the art of moving from runway to retail in weeks rather than months, offering trendier styles at lower prices. Aeropostale's response was to double down on heavy discounting, which eroded margins without stopping the customer exodus. The chain lost money for 13 consecutive quarters, and its stock was delisted from the NYSE in April 2016.

On May 4, 2016, Aeropostale filed for Chapter 11 bankruptcy protection with $354 million in assets against $390 million in debt. It announced the closure of 113 underperforming US stores and all 41 Canadian locations, affecting roughly 7,000 jobs. The company was rescued in September 2016 by a consortium of mall owners (Simon Property Group, General Growth Properties) and liquidators (Authentic Brands Group, Gordon Brothers, Hilco Merchant Resources) in a $243 million deal that kept about 500 stores open and 15,000 employees employed.