ABG lead Consortium Win’s Aéropostale Bankruptcy Auction
This Thursday, Aéropostale Inc. was auctioned off to a consortium led by Authentic Brands Group (ABG) after they bided over 243 million dollars for the bankrupt company. With ABG’s winning bid, Aéropostale will be able to keep open over 200 stores in operation and save possibly thousands of jobs.
Aéropostale representatives commented that the conclusion of the action will be made official after a confirmation hearing, which is set to take place September 12th. Aéropostale officials also commented that they are confident that the new ownership will help them recover from their financial issues and will also help their company evolve better in today’s fashion industry.
Reportedly ABG has gained the company’s e-commerce business and their international licensed businesses. Although ABG doesn’t own all of Aéropostale’s international stores due to previous financial agreements with international sources.
The major partners who were involved in ABG’s consortium purchase were Simon Property Group and General Growth Properties. The consortium also included two liquidator companies, Gordon Brothers Retail Partners and Hilco Merchant Resources, which are set to sell off some of Aéropostale’s inventory from stores that are set to be closed.
ABG’s consortium rivaled against the private equity firm, Sycamore Partners, for Aéropostale’s assets and businesses. Although Sycamore was outbid by ABG, their spokesperson commented that they are still pleased with the outcome of the company’s bankruptcy auction. The spokesperson for Sycamore claimed that the company assumes ABG’s purchase will repay back the money they put into the company when they acted as Aéropostale’s creditors. The Sycamore spokesperson also wished the new ownership group successes with the Aéropostale brand.
The auction reportedly began Monday, but because Sycamore and ABG were in an ongoing bidding duel, the auction didn’t finish until this Thursday. Reportedly, if Sycamore’s won the action, the retail company would have had to close down hundreds of the retail company’s stores due to liquidation.
Before the official legal documents of ABG’s purchase of Aéropostale is filed, a bankruptcy judge will rule if the winner truly is the best company to help Aéropostale out of bankruptcy on September 12th.