Friday, April 22, 2016

Aeropostale Delisted For Abnormally Low Trading Price After Possible Bankruptcy Report

Just a day after in-the-know sources revealed that teen-clothing retailer Aeropostale was headed for bankruptcy, the company was delisted from the New York Stock Exchange. 

Aeropostale confirmed on Friday that it had received written notice that the stock exchange had suspended trading effective immediately, noting that it “does not intend to appear the delisting determination.”

The move to delist came as the NYSE discovered Aeropostale’s stock was trading at “abnormally low” prices.

The Wall Street Journal reports that the stock was trading at just $0.15 on Thursday afternoon before it was halted pending news.

That news happened to be a report that suggested the retailer was prepping a bankruptcy filing after several years of low sales.

Aeropostale said on Friday that in lieu of being delisted from NYSE it would start trading on the over-the-counter market–colloquially (OTCQX) Best Market.

Sources close to the company said on Thursday that after years of losses, the teen-clothing retailer — which operates 800 stores nationally — is supposedly looking to reorganize under Chapter 11.

Still, the company continues to look for ways to avoid a filing.


by Ashlee Kieler via Consumerist

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