Earlier this week, a bankruptcy judge approved a $243 million bid from a group of mall landlords, liquidators, and a licensing company that would save 229 of Aeropostale’s 720 stores from closing their doors forever. Things are looking even better than expected now for the teen retailer, as its new owners say they’ll be able to keep open 171 more stores than originally planned.
A total of 400 of the store’s former 720 locations will now remain open, saving an extra 5,300 jobs on top of the 7,000 the retailer previously announced would survive, the New York Post reports. Late on Thursday, an undisclosed number of mall operators agreed to cut the rents at those 171 stores.
Authentic Brands Chief Executive Jamie Salter told the Post the increase happened after other landlords “cooperated with our business plan.”
“There is nothing wrong with Aeropostale, but you have to get the rents and the overhead under control,” Salter said. “This is a new way of thinking about retail.”
He adds that he had a similar deal in the works with Simon Properties last year with another bankrupt chain, but it didn’t come together. That provided a template for this situation, he says, so he simply approached Simon again. General Growth Partners, another mall landlord, was also part of the group that bid for Aeropostale.
“The entity is financially secure and well capitalized, and we are very pleased that thousands of jobs will be preserved,” said General Growth Partners CEO Sandeep Mathrani.
Aeropostale snags rent deal and saves 171 stores [New York Post]
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