Ala Moana owner a winner in Aeropostale auction
A consortium led by Simon Property Group Inc. and General Growth Properties Inc. won an auction for the assets of Aeropostale Inc., with a plan to keep open at least 229 of the bankrupt teen retailer’s stores.
The bidding group also will keep the chain’s online business and licensing operation up and running, according to a statement late Thursday. The purchase price is $243.3 million plus assumption of certain debt, according to a court filing Friday.
A Manhattan bankruptcy judge must still approve the deal after reviewing the terms and any objections. A hearing on the matter has been set for Sept. 12.
“Aeropostale looks forward to closing the sale and emerging from bankruptcy with new ownership as a financially stronger company positioned to compete and succeed in an evolving retail landscape,” the New York-based company said in the statement.
The chain filed for bankruptcy in May, succumbing to competition from big-box stores, online merchants and “fast fashion” rivals. The company also accused lead lender Sycamore Partners of pushing it into Chapter 11 to buy it on the cheap. The bankruptcy judge rejected that claim and allowed the private equity firm to take part in the bidding.
3 responses to “Ala Moana owner a winner in Aeropostale auction”
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But GGP won’t pony up the money for a “public/private partnership” to partially bail out the HNL Rail Fail even though choo choo is planned to go STRAIGHT to their DOOR.
What happened, Krooky? Your snake eyed smile wasn’t good enough to CONvince?
What is not mentioned is that this big conglomerate does not pay a fair amount of taxes and thus has the loose change to buy out one of its tenants. They made a honeymoon deal with the state of Hawaii to business as Ala Moana Center. They have benefited so much from this arrangement whereby they have a huge advantage against other Hawaii businesses that it is a shameful secret. It is time that they pay their fair share in taxes. Why do they continue to reap from this arrangement? I suspect donations to the campaign coffers keeps them in such an unusual arrangement that any tycoon would love to have in any state. This arrangement served its purpose in the past. Today, this mall is one of the biggest in the nation. But yet they continue to skate by on a pass on taxes. If you don’t see how unfair this arrangement is to all Hawaii businesses, then you can’t see the big pink elephant sitting in the room as you read this article.
This is loose change to them as this big conglomerate does not pay a fair shake in taxes. Few people are aware that they do not have to pay the tax due to an arrangement they had with the state. That arrangement served its purpose in the past. It’s a new day and it is time for them to pay their fair share. This group continues to prosper at the cost of lost tax revenues to Hawaii and its taxpayers.