Thursday, September 8, 2016

Is Mall REITs’ Bid for Aéropostale a New Survival Strategy for Retail Landlords?

Image result for aeropostaleIt was the last minute rescue plan that few in the industry saw coming. Simon Property Group and General Growth Properties joined a consortium of other retail industry players to place a winning bid for the assets of bankrupt teen apparel chain Aeropostale, bringing the retailer back from the edge of an expected collapse.

The New York-based company was facing liquidation early last week after a U.S. bankruptcy court ruled that private equity firm and Aeropostale creditor Sycamore Partners could use $150 million that the retailer owed it to bid for the company at auction. Simon and GGP combined resources with a group of seasoned retailing groups to submit a $234.2-million winning bid for the company last Thursday.. . . more

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