Aeropostale (ARO) Active as Company Explores PE Investment

February 26, 2014 10:39 AM EST
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Aeropostale (NYSE: ARO) is up Wednesday following reports Tuesday night that the mall-based, teen-focused retailer might be looking for capital infusions from private equity.

Bloomberg believes Aeropostale has tapped Barclays to advise on such measures as selling convertible notes or preferred stock to a private-equity firm.

Along with an investment, Aeropostale is considering a sale of the company and has spoken with two buyout firms within the last month.

Aeropostale received a letter from Crescendo Partners last November, urging a sale of the company. CEO Tom Johnson is aiming to mount a turnaround plan following four-straight quarters of losses. Key elements to that plan include an updated fashion mix and closure of 40 underperforming locations.

Aeropostale shares are up 4 percent.

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