Aeropostale's Stock Plunges Following Bloomberg Report Company Is Preparing To Declare Bankruptcy
Shares of Aeropostale Inc (NYSE: ARO) plunged to a new 52-week low of $0.16 on Thursday following media reports the company is expected to declare bankruptcy.
Aeropostale said in mid-March it is exploring strategic alternatives, including a sale of itself. However, Bloomberg reported that the company is preparing to file for bankruptcy as soon as this month.
Bloomberg, citing "people familiar with the matter," noted that retailer is working out a loan to finance its operations during the bankruptcy process.
On the other hand, a deal to avert a filing or find a suitable buyer could also emerge.
The stock was halted at 1:51 p.m. ET, down 27.6 percent.
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