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Consortium's $243.3 million bid wins Aeropostale auction

Staff Writer |
A consortium comprising companies and liquidators prevailed in a bankruptcy auction for Aeropostale with a $243.3 million bid, potentially saving 229 of its stores.

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The outcome of the auction ensures that Aeropostale will continue as a business, albeit with much fewer than the 800 stores it had before it filed for Chapter 11 bankruptcy in May amid fierce competition from online retailers and the fast-changing tastes of its young clientele.

The deal with the consortium, which includes licensing firm Authentic Brands Group, mall operators Simon Property Group and General Growth Properties, and liquidators Gordon Brothers and Hilco Merchant Resources, is subject to approval by a bankruptcy judge in a court hearing scheduled for September 12.

Aeropostale said the consortium intends to operate at least 229 of its U.S. stores, in addition to Aeropostale's e-commerce business and its international licensing business.

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