Aéropostale (company)
| File:Aeropostale logo17.png | |
| File:AéropostaleMarkville.jpg Aéropostale location at CF Markville in Ontario during 2015, which closed the following year | |
| Company type | Subsidiary |
|---|---|
| Industry | Retail |
| Founded | 1987 in Seattle, Washington, U.S. |
| Founder | R.H. Macy & Company |
| Headquarters | , U.S. |
Number of locations | 800 |
Area served | Global |
Key people | Marc Miller (CEO) |
| Products | Apparel & accessories |
| Revenue |  US$1 billion (2021) |
| Owners | |
Number of employees | 21,007 (January 31, 2015) |
| Parent | Catalyst Brands |
| Website | aeropostale.com |
Aéropostale Inc. is a U.S.-based retailer primarily situated in shopping malls, specializing in casual clothing and accessories for teenagers and young adults. The company manages its own brands by overseeing design, sourcing, marketing, and direct retail through its physical stores across the United States as well as its online platform.
Outside the U.S., license partners run Aéropostale and P.S. from Aéropostale outlets throughout regions including the Middle East, Asia, Europe, and Latin America. Established in 1987 by R H Macy & Co., the initial stores were launched in Thousand Oaks, California, and Short Hills, New Jersey.
Pronunciation
In the United States, pronunciations vary such as arrow-PAUSE-tall and arrow-PUS-tall-ee. The company states that the English version simplifies the original French phrase for "French airmail service," pronounced as /ˌɛər oʊ poʊ ˈstɒl/ or "arrow-post-ALL."
Subsidiaries
The brand P.S. from Aéropostale, now discontinued, debuted in 2009 targeting children aged 7 to 12 with affordable clothing options. By winter 2011, it broadened its range to include apparel for kids aged three to six. November 2013 saw the launch of the Bethany Mota collection featuring apparel and accessories designed by the American video blogger. That same autumn, the Live Love Dream (LLD) line was introduced, focusing on girls’ lounge and activewear. Additionally, Aéropostale once operated Jimmy'Z, a surf and skate brand with 14 premium locations; however, all stores were closed by fiscal year 2009.
In October 2014, Aéropostale unveiled United XXVI, an edgier apparel line created in partnership with video influencers Nash Grier, Hayes Grier, and Cameron Dallas.
Current girls’ brands include Free State, Hobie, Invite Only, Junie & Jade, Lorimer, Map to Mars, The Bikini Lab, and United XXVI. For boys, Free State and United XXVI represent the active lines.
Competition
Aéropostale’s primary rivals consist of Abercrombie & Fitch (including its Hollister Co. division) and American Eagle Outfitters, along with various smaller competitors. Its junior brand P.S. from Aéropostale competed against Abercrombie Kids and previously American Eagle’s 77kids line.
Promotions
Since 2007, Aéropostale has launched various promotional efforts featuring prominent personalities to enhance its brand visibility. Beginning in 2008, the company partnered with charitable organizations and artists on campaigns like Teens for Jeans, which aids homeless youth. These collaborations support Aéropostale’s commitment to corporate social responsibility and strengthen its appeal among younger demographics.
Legal issues
- In 2007, Aéropostale was involved in several patent infringement suits brought by Card Activation Technologies, Inc., Picture Patents, LLC, and Furnace Brook, LLC in federal courts located in Illinois and New York. In 2009, Card Activation Technologies achieved a favorable decision regarding claim interpretation, bolstering its patent enforcement position.
- In November 2006, Christopher Finazzo, then Executive Vice President and Chief Merchandising Officer, was dismissed after the Board of Directors discovered undisclosed personal and business connections with South Bay Apparel, a major supplier. The Securities and Exchange Commission initiated an investigation in 2008. Subsequently, in 2010, both Finazzo and South Bay’s owner Doug Dey were charged with conspiracy related to wire and mail fraud. Finazzo was found guilty in 2013 on sixteen counts including mail fraud, wire fraud, and conspiracy.
2016 bankruptcy
Following thirteen straight quarters of financial losses, Aéropostale was removed from the New York Stock Exchange on April 22, 2016, and began trading over-the-counter under the ticker "AROP."
The company filed for Chapter 11 bankruptcy protection on May 4, 2016, declaring assets totaling $354 million. This restructuring included shutting down 113 out of its 739 U.S. stores along with all 41 Canadian outlets (in addition to 20 previously closed), focusing mainly on locations that were not profitable.
Emerging from bankruptcy in September 2016 followed a $243 million purchase by a consortium comprising licensing firm Authentic Brands Group, mall owners Simon Property Group and General Growth Properties, as well as investment groups Gordon Brothers and Hilco Merchant Resources. By January 2017, over 500 stores had reopened under new leadership. In 2019, Aéropostale made a return to the Canadian market through boutiques inside Bluenotes stores and an online platform.
After the acquisition, Aéropostale assigned its European design, manufacturing, and distribution license to LDN Fashion Design group based in London. By 2020, the company reported annual revenues close to $1.5 billion and operated roughly 1,000 stores throughout the Americas.
See also
- Forever 21
- Gap Inc.
- Old Navy
- Pacific Sunwear
- Retail apocalypse
- List of retailers affected by the retail apocalypse