Case Study: Apparel & Textile

Hilco Partners with Simon, GGP and Authentic Brands Group to Save Aeropostale


Size
$1.7B retail inventory

Scale
800 stores
Context
Strategic Partnership

Description

In a unique, first of its kind transaction, Hilco partnered with licensing firm Authentic Brands Group LLC, and mall operators Simon Property Group and General Growth Properties, in a deal that preserved Aeropostale’s ongoing business. On the verge of fully liquidating, Hilco played a pivotal deal-making role in structuring the new entity. The working capital generated from our involvement funded the company through its restructuring and inventory reformatting process, ultimately resulting in 555 reopened stores and thousands of saved jobs.

Problem to Solve

  • Aeropostale, a nationally recognized mall-based apparel retailer with hundreds of stores in the best malls, filed for bankruptcy protection in May 2016 with plans to reorganize.
  • When plans to reorganize failed to come to fruition, the company was faced with a full chain liquidation.
    Liquidating was unpalatable to mall operators and unsecured creditors.

Solutions Provided

  • Capital to fund operations
  • Operated retail stores for 6 months


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