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Aeropostale Seeks to Auction Assets in Bankruptcy Wind-Down

  • Reorganization as standalone ‘is not feasible,’ retailer says
  • Chain weighing possible claims against Sycamore Partners

Teen clothing chain Aeropostale Inc. is preparing to sell all its assets and may bring claims against the private equity firm it said drove it into bankruptcy.

The New York-based company said in court papers July 15 that “reorganization on a standalone basis is not feasible.” Instead, it will look for a “stalking horse” to make the lead bid at an auction next month and will pass the proceeds of any sale to creditors.