Aeropostale Receives Offers to Buy from Sycamore Partners and Liquidators

by San Antonio Attorney

Aeropostale Inc., which filed for bankruptcy in May, got offers to buy for its business from Sycamore Partners, and also firms that liquidate businesses, as said by persons acquainted with the subject.

Versa Capital Management LLC, an investment managing firm, has not offered to buy the business, according to the sources.  Versa was preparing to submit a stalking horse bid for Aeropostale, and the retailer had been allowed by the court to pay some of the costs incurred by Versa in preparing the proposal.

On Aug. 26, Sycamore its court battle against Aeropostale, who blamed for its bankruptcy.  The retailer accused Sycamore of carrying out a “loan to own” plan and driving Aeropostale into bankruptcy.  The teen clothing retailer had sought to stop Sycamore from utilizing the $150 million it is due as credit to offer in the auction sale, but that request was denied by the judge.

Aeropostale said in an official statement that it is disappointed with the decision of the court.

The deadline of submission for offers to buy the company was Aug.  25, and an auction is will be held on Aug. 29.  The plans of Sycamore for the business are still unclear.

Aeropostale also got offers for its leases, as well as its GoJane.com online store.

Aeropostale filed for Chapter 11 bankruptcy on May 4 amid falling sales and cutthroat rivalry from fast fashion retailers.

About 5 American teenage retailers, which include Pacific Sunwear of California Inc. and Wet Seal LLC, have declared bankruptcy since 2014, owing to the shift of young people’s spending habits.

According to earlier reports, Aeropostale plans to close down 113 stores in the U.S., plus 41 stores in Canada.

Based on its Chapter 11 filing, the company stated $354 million in assets and $390 million in liabilities.

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