September 28, 2016
Mall Owners Go on Defensive to Rescue Aéropostale
Mall Owners Go on Defensive to Rescue Aéropostale Landlords’ unusual strategy aims to hold on to tenant’s stores and avoid a liquidation Aéropostale filed for chapter 11 bankruptcy protection in …

Read more


Mall Owners Go on Defensive to Rescue Aéropostale

Landlords’ unusual strategy aims to hold on to tenant’s stores and avoid a liquidation

Aéropostale filed for chapter 11 bankruptcy protection in May and later faced the threat of liquidation. Simon Property Group counts 160 Aéropostale stores and General Growth Properties has 77 in their respective tenant portfolios. Photo: Rick Wilking/Reuters

Updated Sept. 27, 2016 2:50 p.m. ET | By Esther Fung | WSJ

A move by a pair of mall owners to rescue distressed retailer Aéropostale Inc. shows how some landlords are getting more aggressive as they seek to stem a rising tide of vacancies and store closings.

Simon Property Group and General Growth Properties Inc. were part of a consortium that last week won an auction to purchase teen-apparel retailer Aéropostale, an unusual move in which shopping-center landlords stepped in to rescue a tenant to preserve the tenant’s business.

‘Liquidation and bankruptcies tend to be messy and landlords would rather avoid that at nearly all cost.’
—D.J. Busch

The push to take over the struggling retailer comes at a time when changing shopping habits and the growth of e-commerce are eating into traditional retailers’ revenue and in some cases forcing store closures. That, in turn, is weighing on mall operators, forcing some to reconfigure their properties and add other attractions to bring in shoppers.

Simon and General Growth saw value in keeping afloat Aéropostale, which had filed for chapter 11 bankruptcy protection in May and later faced the threat of liquidation. Aéropostale stores potentially generate more than $1 billion in global retail sales, of which more than $800 million is from the U.S., said General Growth Chief Executive Sandeep Mathrani in a news release. Simon counts 160 Aéropostale stores and General Growth has 77 in their respective tenant portfolios.

General Growth and Simon declined to comment about their turnaround strategy for Aéropostale.

Read the full story on WSJ by clicking the link below…

—Lillian Rizzo contributed to this article.

Write to Esther Fung at esther.fung@wsj.com

Original Article Located Here

Recent

4 Tips To Improve Your Banner Ads

4 Tips To Improve Your Banner Ads

The first step to improving your banner ads is to craft a compelling advertisement. Too often, alternative investment firms simply feature their logo and tagline, expecting viewers to click through.

Most Popular

Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update 10-3-2023 Blue Vault wishes to acknowledge and apologize for the delay in publishing some Q2 2023 NTR Individual Performance Pages (IPPs) as well as the full review. We recently added additional reporting metrics to our IPPs, and that, combined with coverage of all share classes and some additional…
Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update 9-25-2023 Blue Vault has published the Q2 2023 Nontraded BDC Industry Review as well as Individual Performance Report and Limited Operations pages for the following offerings (newly published pages in bold font): Nontraded REITS American Healthcare REIT Q2 2023 Apollo Realty Income Solutions Q2 2023 (limited operations) Ares…

Explore

Blue Vault Logo
Don’t miss alts news
and educational events

Subscribe Now