Mall operators agree to slash rents to keep more Aeropostale stores open

GGP and Simon among the new owners to benefit

Sep.September 16, 2016 12:45 PM

From the New York website: The new owners of ailing teen retail store, Aeropostale, will keep an extra 171 stores open thanks to a cut-price rent deal with rival mall operators.

A Manhattan bankruptcy judge on Monday approved General Growth Properties and Simon Property Group’s purchase of Aeropostale along with Authentic Brands Group for $243 million. The companies vowed to keep 229 stores open, rather than liquidate all assets.

And yesterday, in an “11th hour deal,” other mall operators across America agreed to slash rents to keep an extra 171 stores open, the New York Post reported. It’s unclear how much the rents are being cut.

The plan from the consortium of new owners was to keep the chain alive, but to reduce the number of stores from 800 to 229.

With this new deal, which is with an undisclosed number of mall operators, 400 stores will stay open, and an extra 5,300 jobs will be saved. [NYP]Miriam Hall

Related Articles


Sandeep Mathrani’s golden parachute from Brookfield-GGP deal could be worth as much as $189M

Brookfield partners with CalPERS and CBRE on GGP acquisition

Brookfield’s deal for GGP is a cloud hanging over the mall sector: analysts

Brookfield reaches massive deal to buy remainder of GGP

General Growth Properties raises its ownership stake in Miami Design District

GGP rejects Brookfield’s $15B buyout offer

Malls open their doors to the once-shunned fitness industry

Brookfield makes $15B bid to buy remainder of GGP