A consortium comprising Simon Property Group and General Growth Properties has won an auction for the assets of bankrupt US-based retailer Aéropostale, which will keep its 229 outlets open.
According to a Reuters report, the deal is valued at $243.3m.
The consortium will also continue to run Aeropostale’s online business and licensing operations. However, the deal still needs to secure approval from US’ Manhattan court, which has a hearing on the issue scheduled for 12 September.
Terms of the deal has not been disclosed by the consortium.
Aeropostale was quoted by Bloomberg as saying: “Aéropostale looks forward to closing the sale and emerging from bankruptcy with new ownership as a financially stronger company positioned to compete and succeed in an evolving retail landscape.”
In May, Aéropostale filed for bankruptcy as it has been struggling to compete with online retailers.
A Sycamore spokesperson was quoted by Reuters as saying: “We are pleased with the outcome of the Aeropostale bankruptcy auction, which will result in the repayment of our debt while enabling the company to keep open more than 200 stores, preserve thousands of jobs and continue to serve customers.”
Over the last two years, around five US teen retailers, including Wet Seal and Pacific Sunwear have filed for bankruptcy.