A consortium led by Simon Property Group Inc. and General Growth Properties Inc. won an auction for the assets of Aeropostale Inc., with a plan to keep open 229 of the the bankrupt teen retailer’s stores, Bloomberg News reported today. The bidding group will also keep the chain’s online business and licensing operation up and running, according to a statement yesterday. A bankruptcy judge must still approve the deal after reviewing the terms and any objections as a hearing on the matter has been set for Sept. 12. Aeropostale filed for bankruptcy in May, succumbing to competition from big-box stores, online merchants and “fast fashion” purveyors. The company also accused lead lender Sycamore Partners of pushing it into chapter 11 to buy it on the cheap. The bankruptcy judge rejected that claim and allowed the private equity firm to take part in the auction. Read more.
Does bankruptcy still work for retail? Listen to the perspectives of bankruptcy judges and top practitioners at ABI’s Views from the Bench in Washington, D.C. on October 7. Register here.
