Unusual deal gives Aeropostale new lease on life — and it just got better

A first-of-its kind arrangement has saved Aeropostale.



A consortium made up of Authentic Brands Group (ABG) and two of the nation’s largest real estate companies — General Growth Properties and Simon Property Group — announced it has finalized the acquisition of the teen apparel retailer. It is the first time that mall operators have participated in a deal to acquire a retail chain.



“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, Authentic Brands, whose portfolio includes Juicy Couture, Jones New York, Judith Leiber, Frederick’s of Hollywood,Hickey Freeman, and Hart Schaffner Marx. “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.”



Under the arrangement, Aeropostale will operate approximately 400 stores in the U.S. and Canada and approximately 300 doors across Latin America, Europe, the Middle East and Southeast Asia. Under the original plan approved by the bankruptcy court judge, 229 stores, all in Simon and General Growth malls, were to be kept open. But Jamie Salter told the New York Post he was able to increase the number of saved Aeropostale stores to 400 after other landlords “cooperated with our business plan.” The rent reductions allowed the additional 171 stores to stay open.



"Aeropostale has significant brand equity and the go-forward portfolio of stores generates more than $1 billion in global retail sales, over $800 million of which is from the U.S.,” said Sandeep Mathrani, CEO, GGP. “The entity is financially secure and well capitalized and we are very pleased that thousands of jobs will be preserved.”