Teen clothing retailer Aeropostale has asked a federal judge for permission to pay bonuses to 10 top executives for helping to navigate the struggling company through bankruptcy.
Aeropostale filed for Chapter 11 protection in May following turbulent sales that have plagued many teen retailers competing with fast-fashion chains such as H&M and Forever21. Soon after filing, the company closed more than 150 stores.
Lawyers for the company are requesting $3.41 million, contingent upon the retailer getting out of bankruptcy and meeting a sales revenue goal, reported MarketWatch.
"During this process, the [retailer] started experiencing the loss of some of their highly valuable employees throughout critical areas of their businesses," the company's lawyers said in documents. "These voluntary resignations included members of the [retailer's] leadership team and other employees that performed critical functions, including the [its] director of tax, director of strategy and customer insights, senior director of social media, senior director of operations procurement and various regional managers."
Earlier this month, the U.S. Bankruptcy Court gave final approval for Aeropostale to access $160 million in debtor in-possession, or DIP, financing from Crystal Financial in order to navigate a turnaround.
- see this MarketWatch article