Shopping centre operator Simon Property Group to the Aeropostale’s rescue

Simon Property Group has reportedly joined forces with General Growth Properties, licensing firm Authentic Brands Group and liquidators Gordon Brothers Retail Partners LLC and Hilco Merchant Resources LLC to save at least 229 stores of ailing Aeropostale.

According to sources close to the matter quoted by the ‘Wall Street Journal’, the bid for is for “substantially all” of Aeropostale’s assets and would come in at approximately 243.3 million dollars.

The going-concern bid announced Tuesday also comes with a backup plan, highlights the ‘Indianapolis Business Journal’: If it isn’t chosen as the “best and highest” offer, joint venture members Hilco, Gordon Brothers and Authentic Brands will bid on the chain’s merchandise and intellectual property.

The same sources referred to by the ‘WSJ’ further explained that other expenses such as Aeropostale’s bankruptcy financing would be also covered by the reported suitors.

Aeropostale to continue reviewing bids received after Simon Property’s proposal

Regardless this joint venture, the auction, which has been going all week, continued on Wednesday, according to the filing.

In this regard, lawyers for Aeropostale updated the bankruptcy judge on the auction Wednesday afternoon, saying they were working on documentation for the group’s offer, while also evaluating other bids.

The auction should conclude Thursday, attorney Ray Schrock told U.S. Bankruptcy Judge Sean Lane on a conference call. He said the parties worked through the night. “We have an energised but weary group,” Schrock said, reported Bloomberg.

Once worth almost 2.6 billion dollars, Aeropostale's market capitalisation fell to circa 2 million dollars when it filed for Chapter 11 protection in May.

Back to 2010, the stock traded for more than $30 apiece, when annual sales exceeded 2 billion dollars. In April, it was delisted from the New York Stock Exchange after shares failed to break the 1 dollar barrier for a year. Aeropostale shares on Wednesday were trading over the counter for 5.5 cents each, according to Bloomberg.

Image: Seriously Stretch Jeans Collection, Aeropostale Web