Aéropostale
Teen specialty retailer offering casual apparel and accessories.
PE-OWNED
Acquired by Sun Capital Partners2016-09-09
What Made It Great
Teen fashion destination with casual, accessible styles at competitive prices
What PE Will Likely Do
Aéropostale will undergo a rapid store closure program, shutting down underperforming locations and focusing on their most profitable stores.
The quality and selection of Aéropostale's clothing and accessories will decline as the company reduces inventory levels and defers store renovations and updates.
Aéropostale may introduce lower-quality, cheaper materials and manufacturing to cut costs, resulting in a noticeable decrease in the durability and appearance of their products.
Customers are likely to experience longer wait times, reduced in-store assistance, and a generally less pleasant shopping experience as the company prioritizes cost savings over customer service.
Expected Timeline
“0 to 6 months months”
Announcements about 'transformation' and 'optimization' at Aéropostale, including plans for store closures and operational changes.
“6 to 12 months months”
First round of Aéropostale store closures and staff reductions announced, leading to a decline in store quality and inventory selection.
“12 to 24 months months”
Continued reduction in Aéropostale's store count and maintenance, resulting in a noticeable decrease in the quality and variety of their clothing and accessories.
“24 to 48 months months”
Bankruptcy rumors begin to circulate about Aéropostale, and the company may undergo more aggressive cost-cutting measures, including further store closures and product quality reductions.
“48 to 60 months months”
Potential liquidation, restructuring, or fire sale of Aéropostale's remaining assets as the company struggles to remain viable.
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Consumers should be prepared for a gradual decline in the quality and selection of Aéropostale's clothing and accessories, as well as a less satisfactory in-store shopping experience.
Customers may want to consider shopping at Aéropostale's competitors or alternative retailers that offer similar styles and quality, as the Aéropostale brand and products are likely to deteriorate over time.
Alternatives
Employee-owned warehouse retailer
Publicly traded retailer with strong values