The Martin + Osa clothing chain has run out of time to keep looking for that elusive formula for winning over grown-up customers.

The chain's parent company, South Side retailer American Eagle Outfitters Inc., waited until the markets closed Tuesday to announce that it will end the ambitious project that launched in late 2006 and grew to include 28 stores around the country, including one in Ross Park Mall, and an online store.

In its official announcement, the company said store closings should be completed around the end of the second quarter, or early summer.

American Eagle officials are likely to be questioned further on their decision this morning when the company releases results for the fourth quarter and the fiscal year that ended in January. But many in the analysts' community can be expected to offer congratulations.

Within minutes of the company's late afternoon announcement, another analyst issued a note to investors praising the decision. "We do not believe the announcement indicates American Eagle is set to disappoint on earnings tomorrow morning," wrote Brian Sozzi, with Wall Street Strategies Inc. "Rather, it reflects a management team seeking to start the year on a clean slate, or in other words deciding not to throw good money after bad."

At about the same time, a fan on the Martin + Osa Facebook page was offering a different reaction. "I can't believe that AEO has announced that they are shutting down M+O. I was still hoping they would allow more time for the brand to improve revenues in tomorrow's address. It's really sad," wrote poster Audrey Ling.

That split reflected the debate that raged around the project, which was begun with great excitement over the potential to reach a 25- to 40-year-old audience and extend sales beyond the core teen clientele draped in American Eagle garb. The AE brand supports around 950 stores and is running out of room to grow.

From the start, the goal for the brand seemed to be channel an easy, classic feeling. The actual name came from a married couple from Kansas who became explorers. Officials estimated the potential market could grow the chain to $1 billion in revenues within a decade.

But other chains that also saw potential in that age group also struggled. Last year, Abercrombie & Fitch closed its 29-store Ruehl chain, meant for an older audience.

American Eagle officials seemed reluctant to give up too easily. Then in December, the president of Martin + Osa left quietly.

"Closing Martin + Osa was a difficult decision, particularly in light of the progress that was made over the past year," said Jim O'Donnell, CEO, in the official statement Tuesday. "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."

In the announcement, American Eagle reported that Martin + Osa 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.

The company said it would "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."

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