19 Retail Takeovers: Rumors Run Rampant
Aeropostale (ARO) is taking precautions to defend itself over a possible takeover by private equity, according to reports.
The New York Postreported that the teen apparel retailer hired Barclays Capital as a strategic adviser, as management wants to remain publicly traded.
Aeropostale has faced some difficulties in the second half of the year, reporting a 1% decline in same-store sales in November, its second consecutive monthly drop, as well as the departure of Co-CEO Mindy Meads."Am I surprised? No," Wall Street Strategies analyst Brian Sozzi says. "There are poor assortments coming up until spring, [Meads] was just pushed out, the stock is under pressure and management believes it's undervalued. There are classic signs here."
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