In a turn of events made shocking by how routine it is, a judge has approved the last-minute deal that will keep Aéropostale open for business — albeit in a more limited way.
Judge Sean Lane of the U.S. Bankruptcy Court in New York has given final approval to a deal that will see the embattled teen retailer sold to a group of mall landlords, liquidators and licensing company Authentic Brands Group for $243 million.
The buyout was a last-minute surprise in a bankruptcy process best described as “thrill a minute” when it seemed all but a foregone conclusion that Aéropostale shareholder, Sycamore Partners, would win the bid and begin dismantling the firm.
Lane had allowed Sycamore to leverage the retailer’s unpaid debt as part of its bid.
As of today’s (Sept. 14) ruling, the 229 mall-based Aéropostale stores likely will remain open, saving more than 7,000 of the retailer’s jobs. Aéropostale will now seek approval for changes to an order that will allow it to access its lenders’ cash.
And while its adventures in bankruptcy court seem to be mostly over, Aéropostale has the arguably more difficult fight still left ahead of it: re-attracting its tween and teen consumers in a world that seems to have moved on to fast fashion and digital commerce. Is there room for an Aéropostale in a fashion world that H&M dominates?
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Act I is over — the players are clearing the stage.
Act II — the comeback — is set to start.
