The Authentic Brands Group-led consortium to buy bankrupt Aéropostale Inc. for $243.3 million as a going concern has closed on the transaction.
According to Jamie Salter, chairman and chief executive officer of ABG, the updated plan calls for “up to 400 doors” to stay open, a move that would save what now appears to be closer to 7,000 jobs.
The consortium includes landlords Simon Property Group and General Growth Properties, who will partner with ABG to operate the stores. ABG will own the intellectual property assets.
Salter said Thursday that the company will be launching a wholesale business and has plans for shops-in-shop with other retailers.
ABG is putting together a management team for the Aéropostale operation. Salter said the addition of Aéropostale “propels the retail revenue driven by ABG’s brands to over $4.5 billion in retail sales worldwide.”
Sandeep Mathrani, chief executive officer of General Growth, said the “go-forward portfolio of stores generates more than $1 billion in global retail sales [with] over $800 million of which is from the U.S.”
David Simon, chairman and ceo of Simon Property Group, said, “We are pleased to be part of this consortium that has saved thousands of jobs and preserved a legendary American brand.”
Separately, John Erlandson has been promoted to chief revenue officer at ABG. Erlandson will lead ABG’s revenue growth strategy to align and drive all new licensing revenue generation on a global basis. The sports and fashion pillars, business development and business affairs teams will report to Erlandson. Further, Adam Geisler is the new group executive vice president of sports and Matthew Nordby has been promoted to president of international business development and gaming at ABG.