Teen apparel retail chain Aéropostale, which filed for chapter 11 protection earlier this month, has reached a settlement with supplier MGF Sourcing that — if approved by a bankruptcy judge — should have inventory flowing back into stores and remove some acrimony from the proceedings, the New York Business Journal reported on Friday. New York-based Aéropostale had claimed that MGF Sourcing, which is owned by Aéropostale’s biggest lender, Sycamore Partners, placed stricter payment terms to force the retailer into bankruptcy. MGF had called the allegations “frivolous.” If the agreement is approved by Bankruptcy Judge Sean Lane at a May 23 hearing, the final MGF deliveries to Aéropostale stores will start that day, Aéropostale attorney Jacqueline Marcus said. After the delivery happens and payments are made, the two companies will end a relationship that stems from a 10-year sourcing agreement they signed two years ago. At the time New York-based Sycamore took an 8 percent stake in the retailer and provided a loan, with the MGF supplier agreement part of the deal.
