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Aeropostale Clashes With Sycamore as Top Backer Becomes Frenemy

Aeropostale is feuding with investor Sycamore Partners.

Aeropostale is feuding with investor Sycamore Partners.

Photographer: Scott Eells/Bloomberg

When Sycamore Partners bought a big stake in Aeropostale Inc. in 2013 and then loaned it $150 million, the private equity firm was seen as a possible savior for the teen-apparel chain.

Some investors figured that Sycamore would eventually acquire the rest of Aeropostale, helping redeem a stock that has been tumbling since 2010. As part of the 2014 agreement to lend Aeropostale money, the investment firm brought on two board members and created a strategic partnership with clothing supplier MGF Sourcing.