Mall operators agree to slash rents to keep more Aeropostale stores open
GGP and Simon among the new owners to benefit
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