Retailer Aeropostale has filed for bankruptcy in New York court after losing money for 13 consecutive quarters.
The company revealed it would be closing 113 of their 739 stores in the U.S. along with 41 in Canada. With a debt totaling at $390 million, Aeropostale expects to use the bankruptcy to restructure the business, The Source reports.
According to court statements, the retailer has secured $160 million in financing from Crystal Financial LLC and will continue to take on new employees with pay while making a comeback.
The bankruptcy came from a dispute between the company and one its biggest suppliers, MGF Sourcing. According to the court filing, the effects on the ongoing dispute put a strain on the company after cash was demanded on delivery as the finances deteriorated.