Aéropostale will live on, thanks to Simon Property Group and General Growth Properties. The two real estate investment trusts are part of a joint venture that on Thursday won a bankruptcy auction for the retailer.
The new owners, who will pay $243.3 million, agreed to keep the clothing chain alive, but will shrink it from around 800 stores to 229. Aeropostale closed its New York flagship store at SL Green’s 1515 Broadway earlier this year.
Gordon Brothers Retail Partners LLC and Hilco Merchant Resources LLC are also part of the joint venture.
The partners edged a rival bid by private equity firm Sycamore Partners, which offered $1 million more but planned planned to liquidate the entire clothing chain, according to the Journal.
The winning bid still has to be approved by a bankruptcy judge. [WSJ] — Konrad Putzier