Simon Property lead group finalises Aeropostale’s acquisition: 400 stores saved

Authentic Brands Group (ABG), General Growth Properties (GGP) and Simon Property Group (SPG) have finalized the acquisition of ailing teen apparel retailer Aeropostale. The deal has come in as a last-minute lifeline for the retailer, which will keep 400 stores in US and Canada open.

“This consortium brings a new approach to brand development and Aéropostale brings another facet to ABG’s fashion portfolio,” acknowledged the company in a statement earlier this week.

Aeropostale’s new owners includes ABG, the owner of a global portfolio of fashion, sports and entertainment brands, GGP and SPG, two of the largest retail real estate companies in the world.

"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."

Final agreement saves 400 instead of 229 Aeropostale stores across North America

Thanks to the agreement, more Aeropostale’s stores will remain open. Instead of the 229 stores previously announced, there will be a final 400 shops saved across North America by the new owners of the apparel company.

In regards to the future of the retailer, new owners have advanced that “This consortium brings a new approach to brand development and Aéropostale brings another facet to ABG’s fashion portfolio,” said Jamie Salter, Chairman and CEO, ABG.

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.

“The purchase of Aéropostale propels the retail revenue driven by ABG’s brands to over 4.5 billion dollars 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 Aéropostale brand on a global scale,” added Salter.

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

Image: Aeropostale Web