Replies to post #5240 on ARO Liquidation Inc. (fka AROPQ)

[cdhames]

It's further indication IMO, they intend to keep the current business structure largely intact. Since the other gentlemen brought up KMART, I'll use that as an example. When they exited, they did so under a completely new Holding company, with new common shares and a new, high speed executive team leading the charge (under a $2B exit facility).

In ARO's case, maintaining the current echelon, providing bonuses to current upper management and execs if they hit their sales targets, and the fact that their timeline is so condensed (thank you Sycamore) indicates IMO, it's likely they intend to maintain the status quo. Let's not forget the CEO who drove Aeropostale to such high successes in the early 2000's only recently returned a little over a year and some months ago. Since his return he's enforced a major restructure of the company which looked to be turning a corner when Sycamore pulled the plug.

[MasterBlastr]

The very $$ that will keep this from equity is going pfffft right into the clowns pockets, rewarding the clowns as they saved the company.

[MRWnewb]

I can be the first to agree with you that this CAN go either way. definitely there is a possibility that shares will cancel. But realistically look at why we are in this... The company has a few million in debt, really not out of the ordinary, it is not like other BK companies mentioned here that are multi BILLIONS of dollars in debt. In the grand scheme a few million isn't much and could be almost feasible business. but the issue come in with the terms that really tie the hands of the debtor and restrict what they can do putting them in a pickle. from what I read, Sycamore Partners is not very nice.

http://phx.corporate-ir.net/phoenix.zhtml?c=131103&p=irol-newsArticle&ID=2164905
"Expects to Emerge Within Six Months With a Right-Sized Store Footprint, Improved Operational Efficiencies and a Clear Resolution of Its Ongoing Disputes with Sycamore Partners"

http://phx.corporate-ir.net/phoenix.zhtml?c=131103&p=irol-newsArticle&ID=2176912
" renegotiate burdensome contracts, resolve its ongoing disputes with Sycamore Partners and achieve long-term financial stability."

https://www.thestreet.com/story/13556703/1/aeropostale-ceo-claims-largest-investor-wanted-it-to-fail.html
"As Aeropostale's CEO Julian Geiger recounted in court documents filed on Wednesday, "In the fall of 2013, and prior to Sycamore, MGF Sourcing and Aero Investors entering into transactions with the company, Stefan Kaluzny [Sycamore Partners managing director and co-founder] initiated a discussion with me about the possibility of appointing me to Aeropostale's board -- I asked Kaluzny how active a director he would want me to be, and he clearly told me that as a Sycamore director, I should do nothing and just observe because his plan was to let Aeropostale deteriorate so that he could buy the company in bankruptcy, and if he appointed me as CEO I could hit the ground running.""

If you look at Sycamore Partners, they are on a path to acquire companies and Aeropostale was in their sights, but they wont go without a fight. You need to look at the reasons they are in BK currently. Yes they have debt and their market has slowed, but like I said before, a few millions is alot of money but for a company of that size, in reality its not. They are not BK because they have no money, they entered it to prevent getting to that point due the the ridiculous terms with Sycamore, that hurt them in the long run.