Seeking Alpha

Aeropostale considers private capital raise

  • Aerpostale (ARO -2.2%) might look to P-E firms for help with a capital raise, according to Reuters.
  • There is speculation that the retailer might forgo public markets to raise the funds in a private investment transaction.
  • What to watch: Activist investors Sycamore Partners and Crescendo Partners are likely to have ideas of their own on ARO's future path.
Comments (3)
  • SimonSaysShort
    , contributor
    Comments (105) | Send Message
     
    Sadly, capital is not what they need. Competent management on the other hand...now that could prove useful to them.
    10 Feb, 02:52 PM Reply Like
  • CDM Capital
    , contributor
    Comments (434) | Send Message
     
    We second that notion Simon,

     

    This mgmt. team needs to be shown the door, unfortunately they just cannot seem to get it done. We are doubtful they need immediate capital anyways, per last 10-Q they had $68m in cash & an undrawn line of credit of $175m.

     

    A new mgmt. team and the stock would probably be 50% higher than the current depressed prices.
    10 Feb, 03:01 PM Reply Like
  • JohnHolmesJr
    , contributor
    Comments (5) | Send Message
     
    The company just paid $22 a share to buyback stock less than two years ago and now they are going to sell those same shares in a PIPE for ~$5 a share? Wish I would have had the other side of that trade.
    10 Feb, 05:26 PM Reply Like
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