NEW YORK (AP) — Aeropostale says private equity firm Sycamore Partners may take on a larger stake in its business.
The teen retailer said Wednesday that it has struck a deal in which the firm and its affiliates will provide $150 million in loans. In exchange, Sycamore Partners will be given convertible preferred stock that gives the firm the right to buy up to 5 percent of the company's stock.
If Sycamore takes advantage of this, it would raise the firm's stake in the company to roughly 12.3 percent of its outstanding shares.
Aeropostale says a managing director at Sycamore Partners will join its board, and the firm will receive the right to appoint another director.
The New York retailer is trying to turn around its business as slowing sales have hurt its profitability.