Aeropostale shares soar as Sycamore takes 8 percent stake
(Reuters) - Aeropostale Inc (ARO.N) shares rose as much as 19.5 percent on Tuesday after private equity firm Sycamore Partners disclosed in a regulatory filing that it had taken an 8 percent stake in the struggling teen apparel retailer.
Shares were trading at $10.06 in mid-morning, after closing at $8.61 on Monday; earlier in the session, they reached as high as $10.29.
Aeropostale last month reported a decline in second-quarter sales and forecast a deep third quarter loss, pointing to a highly promotional environment that has led it to cut prices.
Between August 23 and last Wednesday, a Sycamore affiliate bought 6.25 million shares for prices ranging from $8.2723 to $8.7564 a share, according to a filing with the U.S. Securities and Exchange Commission.
(Reporting by Phil Wahba in New York; Editing by Gerald E. McCormick)