{"id":1004152692,"date":"2016-09-19T04:31:38","date_gmt":"2016-09-19T12:31:38","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004152692"},"modified":"2020-04-24T08:52:02","modified_gmt":"2020-04-24T16:52:02","slug":"a-template-or-not-consortium-buys-troubled-aeropostale","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/a-template-or-not-consortium-buys-troubled-aeropostale\/","title":{"rendered":"A Template \u2014 or Not? Consortium Buys Troubled A\u00e9ropostale"},"content":{"rendered":"<p><em>By Scott Baltic, Contributing Editor<\/em><\/p>\n<div id=\"attachment_1004152697\" style=\"width: 310px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/09\/Aeropostale-store-Promenade-Thornhill-Ontario.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1004152697\" data-attachment-id=\"1004152697\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/a-template-or-not-consortium-buys-troubled-aeropostale\/aeropostale-store-promenade-thornhill-ontario\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/09\/Aeropostale-store-Promenade-Thornhill-Ontario.jpg\" data-orig-size=\"1232,816\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;7.1&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;NIKON D5100&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1442001653&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;18&quot;,&quot;iso&quot;:&quot;200&quot;,&quot;shutter_speed&quot;:&quot;0.076923076923077&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"Aeropostale at Promenade Mall, Thornhill, Ontario\" data-image-description=\"\" data-image-caption=\"&lt;p&gt;Aeropostale at Promenade Mall, Thornhill, Ontario&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/09\/Aeropostale-store-Promenade-Thornhill-Ontario.jpg?w=1024\" class=\"wp-image-1004152697 size-medium\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/09\/Aeropostale-store-Promenade-Thornhill-Ontario.jpg\" alt=\"Aeropostale at Promenade Mall, Thornhill, Ontario\" width=\"300\" height=\"199\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/09\/Aeropostale-store-Promenade-Thornhill-Ontario.jpg 1232w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/09\/Aeropostale-store-Promenade-Thornhill-Ontario.jpg?resize=300,199 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/09\/Aeropostale-store-Promenade-Thornhill-Ontario.jpg?resize=768,509 768w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/09\/Aeropostale-store-Promenade-Thornhill-Ontario.jpg?resize=1024,678 1024w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><p id=\"caption-attachment-1004152697\" class=\"wp-caption-text\">Aeropostale at Promenade Mall, Thornhill, Ontario (now closed)<\/p><\/div>\n<p><strong>New York\u2014<\/strong>A consortium of shopping center giants <a href=\"https:\/\/www.ggp.com\/\" target=\"_blank\" rel=\"nofollow\">General Growth Properties<\/a> and <a href=\"https:\/\/www.simon.com\/\" target=\"_blank\" rel=\"nofollow\">Simon Property Group<\/a>, along with Authentic Brands Group, has completed its $243 million acquisition of teen apparel and accessories brand A\u00e9ropostale.<\/p>\n<p>By all accounts, the transaction saved A\u00e9ropostale, which filed for bankruptcy on May 4, from being sold for its assets. As things stand now, the chain will go forward with more than 400 stores in the United States and Canada and about 300 retail doors across Latin America, Europe, the Middle East and Southeast Asia.<\/p>\n<p>As of the bankruptcy filing, Simon was a landlord for about 160 A\u00e9ropostale stores and GGP was also an A\u00e9ropostale landlord. Neither company would provide additional information.<\/p>\n<p>\u201cA\u00e9ropostale 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.,\u201d Sandeep Mathrani, CEO of GGP, said in a prepared statement. \u201cThe entity is financially secure and well capitalized, and we are very pleased that thousands of jobs will be preserved.\u201d<\/p>\n<p><a href=\"https:\/\/www.abg-nyc.com\/\" target=\"_blank\" rel=\"nofollow\">Authentic Brands Group<\/a>, a New York City-based brand development company, has in its stable such brands as Marilyn Monroe\u00ae, Elvis Presley\u00ae, Muhammad Ali\u00ae, Shaquille O\u2019Neal\u00ae, Michael Jackson\u00ae *managed brand*, Juicy Couture\u00ae, Jones New York\u00ae, Frederick\u2019s of Hollywood\u00ae, Adrienne Vittadini\u00ae and numerous others.<\/p>\n<p>In another development, as <a href=\"https:\/\/www.bizjournals.com\/newyork\/news\/2016\/09\/16\/bankrupt-aeropostale-to-keep-75-percent-more.html\" target=\"_blank\" rel=\"nofollow\">reported by the <em>New York Business Journal<\/em><\/a>, various mall landlords have agreed to rent reductions for 171 A\u00e9ropostale stores, which will allow the chain to keep a total of 400 stores open in the U.S. and Canada. An earlier estimate had been that only 229 stores could be saved.<\/p>\n<p>\u201cThis could be a model for future restructurings in the years ahead,\u201d Ray Schrock, a lawyer for A\u00e9ropostale, told U.S. Bankruptcy Judge Sean Lane, according to <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2016-09-12\/aeropostale-wins-approval-of-243-million-sale-to-mall-group\" target=\"_blank\" rel=\"nofollow\">a <em>Bloomberg<\/em> story<\/a> a week ago. The judge reportedly found compelling the argument by A\u00e9ropostale\u2019s lawyers that the sale would save at least 7,000 jobs.<\/p>\n<p>This transaction appears to be the first such involving a retail chain and one or more mall owners, Michael Lagazo, San Diego-based senior advisor\/retail for SVN\u2019s Asset Advisory Group, told <em><a href=\"https:\/\/www.commercialsearch.com\/news\/\" target=\"_blank\">Commercial Property Executive<\/a><\/em>.<\/p>\n<p>On one hand, \u201cthese are top-tier mall owners, with the highest mall occupancies,\u201d so in a sense there\u2019s little risk for them, he explained, but the flip side is that they still have to solve A\u00e9ropostale\u2019s deeper problems, beyond the retailer\u2019s short-term liquidity.<\/p>\n<p>Only time will tell whether this is a template for other retailers and mall owners, Lagazo said. He emphasized, however, that \u201cThere are only so many parties that can carry off\u201d a deal like this, that is, probably only a handful of top mall owners have the financial resources to try this strategy anyway.<\/p>\n<p>(In May, <a href=\"https:\/\/www.commercialsearch.com\/news\/cbres-melina-cordero-on-the-evolution-of-retail-real-estate\/\" target=\"_blank\">CPE interviewed Melina Cordero<\/a>, CBRE&#8217;s head of retail research for the Americas, regarding <a href=\"https:\/\/www.commercialsearch.com\/news\/78-kmart-and-sears-stores-to-close-in-july-and-september-nationwide\/\" target=\"_blank\">retailer issues<\/a> in a year in which not only A\u00e9ropostale, but chains like Gap and Abercrombie &amp; Fitch are <a href=\"https:\/\/www.commercialsearch.com\/news\/gap-strategizing-by-closing-over-100-stores\/\" target=\"_blank\">struggling with store closures<\/a>.)<\/p>\n<p><em>Image via Wikimedia Commons, user Raysonho<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The teen apparel company, which filed for bankruptcy this year, commanded $243 million. <\/p>\n","protected":false},"author":882,"featured_media":1004152697,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21743,21808,23891,1600,21742,21749],"tags":[],"class_list":["post-1004152692","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deals","category-featured","category-national","category-new-york","category-latest","category-retail"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>A Template \u2014 or Not? Consortium Buys Troubled A\u00e9ropostale - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/a-template-or-not-consortium-buys-troubled-aeropostale\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Template \u2014 or Not? 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Consortium Buys Troubled A\u00e9ropostale"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555","name":"Scott Baltic","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96","caption":"Scott Baltic"},"description":"Scott Baltic has been a contributing editor with Commercial Property Executive since 2011 and also wrote for its predecessor, Commercial Property News. He started writing about CRE in 1988 for a group of Chicago-based publications and in 1989 became the editor of Midwest Real Estate News. After moving on from there in 1991, Baltic continued writing occasionally about real estate, for publications like the Chicago Sun-Times, National Real Estate Investor, Urban Land, Shopping Center World and Architect\u2019s Newspaper. 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