Aeropostale has filed a for a 10-Q in which the company says it is not able to provide earnings estimates for the first fiscal quarter 2017.
According to an article on Reuters, Aeropostale filed for a 10-Q in which the company says it is not able to provide earnings estimates for Q1. The company hasn’t released earnings results since last year.
The filing reads,
“due to the considerable time and resources that management must devote to the Chapter 11 Cases, the wind-down of the Company, and related administrative requirements, the Company has been unable to complete the preparation of its Quarterly Report within its normal review cycle and has determined that it is unable to timely file its Quarterly Report without unreasonable effort or expense.”
The brand hasn’t released releases earnings results since last year. In March, the brand reported a 16.1% decline in revenue to $498 million in the fourth quarter fiscal 2015. That’s compared to the previous quarter. The brand also missed estimates by $21.69 million.
The brand also filed a with the U.S. Bankruptcy Court to sue Hilco Merchant Resources, Gordon Brothers Retail Partners, and Aero Opco. The companies allegedly did not return a $1.3 million vendor deposit.
The brand is still discounting everything online and in stores. The brand is liquidating its inventory but sales are still declining.
It was said Aeropostale would relaunch as a smaller brand after being acquired by a retail group led by Simon Property Group Inc. and General Growth Properties Inc. but it seems it might not. The company’s filing for a 10-Q shows the brand will still probably go out of business.
So, what do you think? Will Aeropostale go out of business? Let me know in the comments below. Also, don’t forget to subscribe and follow me on Facebook, Instagram, and Snapchat.
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