Aeropostale To Shutter Jimmy'Z
According to the company, the decision to take this action resulted from a "comprehensive review and evaluation of the current macro-economic condition and the performance of the concept."
Company management said that discontinuing the business would enable the organization to focus on the growth within the core Aeropostale business and the roll out of the company's next U.S. retail concept, which it said will target a younger demographic.
Aeropostale said it expects to incur around $5 million of additional pre-tax costs related to lease terminations, inventory liquidation, and employee retention and severance obligations during the first half of fiscal 2009.
The company said it also expects an ongoing financial benefit from the elimination of Jimmy'Z annualized operating losses of around $8 million pre-tax or $0.07 per share.
New York-based Aeropostale is a mall-based, specialty retailer of casual apparel and accessories, principally targeting 14 to 17 year-old young women and men. The company designs, sources, markets and sells its own merchandise, and currently operates 875 Aeropostale stores in 48 states and Puerto Rico, and 29 Aeropostale stores in Canada.
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