SPORTS AUTHORITY, PACSUN AND NOW
AEROPOSTALE WHO NEXT?
- With the Recent Wave of Retailers Filing for Chapter 11, Creditsafe Releases Key Metrics on Health of Retail Industry<?em>
Creditsafe USA Inc, the world’s most used supplier of company business intelligence, reports that the clothing retailer AEROPOSTALE INC. registered in New York has filed for Chapter 11 bankruptcy.
AEROPOSTALE, a company in the retail clothing sector, was incorporated in 1995. The company has shown an alarming decline in key financial metrics over the past three years. Not only has revenue dropped from $2.4 billion in 2013 to $1.5 billion in 2016, but the company has gone from being profitable in 2013 (profit before tax $59 million) to reporting significant losses in 2014 (-$186m), 2015 (-$222m) and 2016 (-$132m).
Matthew Debbage, CEO, Creditsafe USA and Asia stated, “Caution should be given when granting credit within this sector – with 30% of companies in this industry having a high risk credit rating. This compares unfavorably with the 10% average across all industries. There have also been other high profile bankruptcies in this sector in recent months including The Sports Authority, PACIFIC SUNWEAR, Cache and Delia’s to name a few.”
Mr Debbage continued, “According to recent Creditsafe USA research, currently there are over 49,000 companies engaged in the operation of the retail clothing industry in the United States, employing over 3.3 million people. For 2016, the sector expects to report total sales in excess $500B.”
Key Industry Facts
- 49,000 Companies
- $500B in Sales
- 3.3M Employees
- 30% companies deemed as 'High Risk'
About The Creditsafe Group
The Creditsafe Group is the world’s most used supplier of company business intelligence, with ten Creditsafe Group reports downloaded every second. Privately owned and independently minded, Creditsafe is looking to change the way business information is used by providing high-quality data in an easy to use format that everyone in an organization can benefit from.
Founded in Norway in 1997, Creditsafe has offices in countries all over the world including: the UK, Germany, France, Sweden, Ireland, Italy, Belgium, the Netherlands and the United States. Globally, Creditsafe employs over 1,200 people and has more than 90,000 subscription customers. Three years ago, the Creditsafe Group opened offices in the U.S. under the name Creditsafe, Inc. Its U.S. operations are headquartered in Allentown, Pa. with another facility in Phoenix, AZ. For more information, please visit www.creditsafe.com.
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