Aeropostale said it was exploring strategic alternatives, including a sale, as the teen apparel retailer struggles to cope with rapidly changing consumer tastes and stiff competition.
The company's shares dropped more than 50 in premarket trading on Thursday. (Get the latest quote here.)
Teen apparel retailers are struggling to keep their customers as fast-fashion companies such as Inditex's Zara and H&M eat into their market share.
Aeropostale said it was facing disruption in the supply of some merchandise due to a vendor dispute with an affiliate of Sycamore Partners.