• May 22, 2012

American Eagle Outfitters says it is bailing out of its children’s business, 77kids, which includes 22 stores and the online business. “Although making this decision is disappointing, it is in the best interest of the company and our shareholders to prioritize and focus our efforts on businesses with the highest return potential,” CEO Robert Hanson says in its announcement. In fiscal 2011, the Pittsburgh-based teen clothing chain says that the brand generated an after-tax loss of approximately $24 million on sales of $40 million.