- Angela Gonzalez-Rodriguez |
Aeropostale is perhaps the one amongst teen apparel retailers in the US that is suffering the most. And, as analysts at ‘Seeking Alpha’ point out, its situation might be just about to worsen after the exit of its financial backer’s representative from the company’s board.
It is worth of remembering that in its latest annual financial release, Aeropostale posted a net loss of 206 million dollars.
Now, after the retailer secured a 150 million dollars credit facility from Sycamore Partners, Stefan Kaluzny’s departure from ARO’s board of directors reveals that Sycamore might be giving up on ARO, reports ‘Seeking Alpha’.
“Stefan Kaluzny's decision to part ways with the company has special significance since he maintains the position of Managing Director at Sycamore Partners and joined Aeropostale's board of directors after the firm raised its stake in the company in an attempt to advise the company on potential revival strategies,” sums up its stance on the company’s struggles ‘Seeking Alpha’.
In this vein, market insiders have stressed that if Aeropostale’s liquidity goes below 70 million dollars, it would have to default on its Sycamore loan.
In another adverse turn of events for Aeropostale, rumour has it that the retailer has been in the spotlight recently as many investors and analysts have suggested that the company is a prime target for an acquisition.
Earlier this week, Trade-Ideas LLC identified Aeropostale (ARO) as a weak on high relative volume candidate, this is, “worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst.”