The apparel retailer previously had about 800 stores, but years of declining sales led the company to file for Chapter 11 bankruptcy about four months ago. A deal was completed at a Sept. 2 auction that will allow the landlords to acquire Aeropostale’s remaining assets for $243 million.
The move will prevent the company from going completely under as the buyers partnered up with liquidators to keep at least 229 stores open. About 7,000 workers will keep their jobs with the retailer thanks to the move.
Simon Property Group was a landlord at 160 Aeropostale locations. The sale was approved by U.S. Bankruptcy Judge Sean Lane.
$74 million is being set aside to fund a Chapter 11 plan. When the company filed for bankruptcy back in May, it closed over 150 North America stores in the U.S. and Canada, which was followed by more store closings and employees losing their jobs over the following months.
In late August, Sycamore Partners was in the lead to acquire Aeropostale’s assets, submitting a bid that was estimated at around $151 million. However, the deal fell through as the company claimed two of the firm’s affiliates played a role in leading the company to bankruptcy.
Sycamore claimed that it was looking to maximize the retailer’s value, but a higher bid with more positive repercussions may prove to be Aeropostale’s savior going forward.
AROPQ stock is down 5% Monday.