Aeropostale rescued from bankruptcy
General Growth Properties and Simon Property Group have teamed with Authentic Brands Group to buy Aeropostale out of bankruptcy.
The new owners say the deal ensures the survival of over 700 retail stores worldwide, including those operated by partners in the Philippines and Singapore. And they are promising global expansion of the brand.
Aeropostale sells casual wear to young women, men and kids at low price points in more than 400 stores in the US and Canada and another 300 across Latin America, Europe, the Middle East and Southeast Asia.
Authentic Brands Group owns a large portfolio of prominent fashion, sports, celebrity and entertainment brands, partnering with licensees and retailers. Its portfolio includes Marilyn Monroe, Elvis Presley, Muhammad Ali, Shaquille O’Neal, Michael Jackson, Juicy Couture, Frederick’s of Hollywood, Adrienne Vittadini, Misook, Airwalk and Vision Street Wear.
“We are pleased to be part of this consortium that has saved thousands of jobs and preserved a legendary American brand,” said David Simon, chairman and CEO, Simon Property Group. “We are encouraged by the tremendous amount of support we have received from employees, vendors and other landlords.”
The consortium believes ABG’s proven track record with brand building and licensing, combined with the expertise of retail real estate specialists, GGP and SPG, ensures there is now a strong foundation in place for long term performance and growth of Aeropostale.
“This consortium brings a new approach to brand development and Aeropostale brings another facet to ABG’s fashion portfolio,” said Jamie Salter, chairman and CEO of ABG.
“The purchase of Aeropostale propels the retail revenue driven by ABG’s brands to over US$4.5 billion in retail sales worldwide.
“We look forward to working closely with our new partners, General Growth Properties and Simon Property Group to continue to grow the Aeropostale brand on a global scale.”
Aeropostale stores generate more than $1 billion in global retail sales, over $800 million of which is from the US.
“The entity is financially secure and well capitalised and we are very pleased that thousands of jobs will be preserved,” said Sandeep Mathrani, CEO of GGP.