Hirzel's investment boosts Aeropostale stock
By FashionUnited
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Dallas-based Hirzel Capital said in a government filing Tuesday that it has taken a 6 percent stake in Aeropostale. On the wake of the news, the apparel retailer´s shares rose 2.5 percent to 9.75 dollars in after-hours trading.
Furthermore,
Hirzel´s investment follows Sycamore Partners’ subsidiary´s Lemur LLC – former Hummingbird LLC – 8 percent stake acquisition in the retailer. Lemur executives dubbed the company “an attractive investment” when they enter Aeropostale´s capital in September.
New investment revives Aeropostale´s stock
The stock at Aeropostale has fallen 25 percent over the past year on declining sales for the teen apparel retail niche market. In the past months, Aeropostale has seen its main consumers severely affected by the weak economy and therefore have limited money to spend on clothes and accessories. The retailer has embarked in an image revamp to attract further consumers with a trendier clothes offering.As called out by ‘Businessweek’, Aeropostale posted a second-quarter loss in August and issued a weak outlook due to poor sales, suffered as well by its main competitors - Abercrombie & Fitch Co. and American Eagle Outfitters Inc.