Fresh off the heels of a fiscal 2009 in which Martin + Osa lost 44 million dollars after taxes The Pittsburgh Tribune-Review is reporting that American Eagle has decided to pull the plug on the clothing brand. Despite gains year over year "the company [American Eagle] said it wasn't achieving performance levels that justified further investment." Both its 28 stores and online operations are expected to close by midsummer.
Talk about a shame, especially for a brand I believed was just beginning to find its identity and seemingly position itself to battle J. Crew for coveted market share - blame the economy or poor marketing, it's moot at this point. I was a big fan of the brand's affordable style and was extremely excited to see what they would bring to the table in the coming crucial season, but alas it was just not meant to be. I guess it's back to the profitable business flip flops and bootcuts for AE. Read the article here.