US-based casual clothing and accessories retailer Aéropostale is planning to file for bankruptcy protection due to losses and declining sales.
The Wall Street Journal cited sources saying that the company is planning to seek chapter 11 protection soon before rent payments for this May are due.
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The retailer is also holding talks with lender Crystal Financial to secure a loan to finance its operations in bankruptcy.
As part of its decision, Aéropostale also plans to close more than 100 of its 800 stores immediately after completion of filing, sources said.
Meanwhile, the retailer proposes to reorganise around its remaining stores; however, the plan is said to be unclear.
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As of last January, Aéropostale had 21,000 employees and reported losses during its last three fiscal years due to a drop in sales.
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By GlobalDataSingapore-based Jay Gee Melwani Group distributor of the brand told the Straits Times: "The stores will remain open for the time being, as long as they are able to supply us the goods."
Aéropostale maintains control over its brands by designing, sourcing, marketing and selling its own merchandise.
The company operates 773 Aéropostale stores in the US and 61 stores in Canada.
