American Eagle to close Martin+Osa stores
American Eagle Outfitters to close Martin+Osa brand and 28 retail stores
On Tuesday March 9, 2010, 5:20 pm ESTPITTSBURGH (AP) -- American Eagle Outfitters Inc. said Tuesday it plans to close its Martin+Osa women's and men's apparel line, including 28 stores, after the brand continued to lose money last year.
Martin+Osa lost about $44 million in 2009, including an $11 million writedown. American Eagle said the brand's performance levels don't warrant further investment. The company is focusing its efforts and resources on its other brands including AE, aerie and 77kids, which it thinks have greater potential to create long-term shareholder value.
The news sent its shares jumping $1.39, or 8 percent, to $18.70 in after-hours trading Tuesday, after closing the regular session up 35 cents at $17.15.
The stores slated for closure are expected to be shuttered by the end of the second quarter. American Eagle did not say how many jobs would be lost as a result.
The company expects to book between $32 million and $77 million in expenses for leases, severance and other costs. It also expects to take about $29 million in writedowns.
American Eagle is based in Pittsburgh.