Buyout-backed Aeropostale could seek investment through PIPE deal

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clothing-scarves-2Private equity-backed teenage clothing seller Aeropostale could take several hundred million dollars of new investment through a private investment in public equity deal, it is understood.

Activist investor Crescendo Partners urged the company to sell itself following a sharp decline in its share price last November, reportedly leading to interest from two buyout firms.

Reuters reported the latest news, citing four people familiar with the matter.

Bloomberg previously Aeropostale had asked investment banks to advise on how to handle pressure from Crescendo or manage a sale process.

It was previously reported that another shareholder, Sycamore, could make a buyout offer for Aéropostale at a significant premium to its current market value.

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