Aeropostale, commonly known as Aero, is the leading apparel company in America and across the world. Now this company is preparing to sell all the assets and thinking to bring the claims against the private equity firm and drove it into the bankruptcy.
According to the details from the court papers, the company says that “reorganisation on a standalone basis is not feasible.” Instead, it will look for the “Stalking horse” to make the lead the bid at an auction which is going be held in next month and will pass the proceeds of any sale to the creditors.
The retailer added over 11,000 pages of documents and depositions produced by the senior lender Sycamore Partners as part of bankruptcy investigation and is considering whether or not it’ll pursue the claim against the private equity firm.
In May, on filing for bankruptcy, Aeropostale suspected Sycamore of instructing a company as it controls to cut off the Aero’s chain’s credit. Aeropostale claims, the company, has demanded money for the goods up front instead after the delivery.
This demand pushed aero towards the bankruptcy path, the company said in court papers, all because of Sycamore’s machinations.
Aeropostale says that it will find that the lead bidder by 15 August 2016 and hold an auction on 22 August 2016. If there is a sign that anyone else is interested. This is listed $390 million in the debts and about $354 million in the assets in the filing done in May 2016.
The case is in re Aeropostale Inc., 16-11275, U.S. Bankruptcy Court, Southern District of New York (Manhattan).