Ending months of speculation, South Side retailer American Eagle Outfitters Inc. this afternoon announced it is giving up on its experiment in clothing an older clientele.

The Martin + Osa chain, which had grown to include 28 stores and an online business, will be shut down by summer, according to an announcement issued in the last hour.

The official statement said that the project generated an after-tax loss of about $44 million in the most recent fiscal year, which ended in January. The brand wasn't reaching the performance goals that would justify more investment, the company said.

"Closing Martin + Osa was a difficult decision, particularly in light of the progress that was made over the past year," said Jim O'Donnell, chief executive officer, in the official statement. "However, it is in the best interest of our company and stakeholders to focus our efforts on the brands that capitalize on our strengths and have the highest potential."

A number of analysts will be pleased at the news, since they considered the project a drag on earnings and favored more investment in other growth projects such as the intimates stores known as aerie and in a new children's line called 77kids.

In today's statement, the company said it will "focus its efforts and resources on the American Eagle family of brands including, AE, aerie and 77kids, which have a greater potential of creating long-term shareholder value."

The brand had, however, built a core of loyal fans who regularly blog about their love of the brand.

American Eagle is scheduled to release fourth-quarter earnings on Wednesday.

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