Aeropostale Inc is considering raising capital from private equity firms as the struggling teen retailer evaluates various ways to shore up both its balance sheet and its share price, four people familiar with the matter said on Monday. Aeropostale, which has reported losses for four straight quarters, faces pressure from investors to sell itself and is working with investment bank Barclays Plc to study its options, the sources said.If the company decides to raise capital, it may choose to do so in the form of a private investment in public equity (PIPE) transaction of a few hundred million dollars, some of the people said.A PIPE transaction is often used by small and mid-cap companies that may have difficulty raising capital in public markets. Private equity firms involved in the deal will typically get stock at a discount to the public market valuation.The situation remains fluid, and Aeropostale is considering other options that may include a sale of the entire company, one of the people said.
Aeropostale, Inc., (Aeropostale) is a mall-based, specialty retailer of casual apparel and accessories, principally targeting 14 to 17 year-old young women and men through its Aeropostale stores and 4 to 12 year-old kids through its P. Shares of ARO traded higher by 0.9% or $0.06/share to $6.71. In the past year, the shares have traded as low as $6.37 and as high as $17.10. On average, 3285430 shares of ARO exchange hands on a given day and today's volume is recorded at 2703661.
Barclays PLC (Barclays) is a global financial services provider engaged in retail banking, credit cards, wholesale banking, investment banking, wealth management and investment management services. Shares of BCS traded higher by 0.8% or $0.145/share to $18.20. In the past year, the shares have traded as low as $15.43 and as high as $19.59. On average, 2325890 shares of BCS exchange hands on a given day and today's volume is recorded at 1017206.
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