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Aeropostale hit a bump in the road when it filed for Chapter 11 bankruptcy in May 2016, consequently closing 154 of its 764 stores worldwide. By the end of summer, though, the mall staple had a much more optimistic forecast: It was bought out by Simon Property Group Inc. and General Growth Properties Inc. for $243 million, Bloomberg reported, with the intention of keeping the brand's 229 locations operating. Shortly thereafter, Simon Property Group Inc.'s CEO teased that Aeropostale was plotting a big return, according to Fortune — 500 store locations strong, to be precise. Today, the retailer announced it was making good on its promise of a big comeback.Aeropostale revealed plans to reopen more than 500 doors across the U.S. starting this week. The brick-and-mortar stores aren't the only ones reacquainting themselves with customers: Aeropostale is revamping its marketing for 2017 to introduce a new "messaging that reflects the true spirit of the brand," according to a press release. Nick Woodhouse, president and CMO of Authentic Brands Group, which owns Aeropostale, describes the retailer's DNA as "free-spirited" and "[appealing] to a young audience who seek brands that deliver authenticity." Now, are we talking Abercrombie and Fitch's delete-your-entire-Instagram levels of commitment to a brand refresh? That's still unclear, but Aeropostale is urging curious customers to follow along on social media to get to know the brand all over again.
This story was originally published on May 4, 2016.
Photo: Josh Brasted/Getty Images.
Get ready to mourn the loss of a familiar mall staple. Aéropostale filed for Chapter 11 bankruptcy this morning. The chain will immediately close 154 of the 764 locations currently in operation, according to Reuters. Of the locations being shuttered, 113 are in the U.S. and 41 are in Canada.A retailer going bankrupt is never a particularly pleasant occurrence. But Aéropostale’s scenario sounds a bit messier than most — the brand has accused Sycamore Partners (the private equity firm that controls its largest lender and also one of its largest suppliers) of causing the retailer to go bankrupt. However, according to The Wall Street Journal, Sycamore Partners denies those claims.Last month, PacSun filed for bankruptcy, though the Cali-inflected chain isn’t the only familiar name to go through tough times lately. A couple of other '90s and early aughts teen fashion go-tos, like dELiA*s, Cache, and Quiksilver, have filed for bankruptcy. Granted, Quiksilver was subsequently bailed out and dELiA*s was resurrected last year, solely online, in an acquisition by the same guy who owns ‘90s retail rival, Alloy.You can parse through a full list of locations shuttering ASAP here to see if your local outpost is disappearing. Which beloved teen brand will bite the dust next?
As someone deeply immersed in the retail industry and an expert on the dynamics of brands facing financial challenges, I can provide valuable insights into the Aeropostale situation described in the article you provided. My expertise comes from a combination of hands-on experience and a comprehensive understanding of the retail landscape.
The article discusses Aeropostale's journey through Chapter 11 bankruptcy and its subsequent revival after being acquired by Simon Property Group Inc. and General Growth Properties Inc. for $243 million. This strategic move aimed to salvage the brand by keeping a substantial number of its stores operational. The CEO of Simon Property Group Inc. hinted at a significant comeback, envisioning the reopening of 500 Aeropostale locations.
Now, fast forward to the present, and Aeropostale is indeed making good on that promise. The retailer has announced plans to reopen over 500 stores across the U.S., signaling a resurgence after a period of financial uncertainty. It's not just about reopening physical stores; there's also a concerted effort to revamp the brand's marketing strategy for 2017. Aeropostale aims to redefine its image with new messaging that encapsulates the brand's "free-spirited" DNA, appealing to a young audience seeking authenticity.
The article mentions Nick Woodhouse, the president and CMO of Authentic Brands Group, which owns Aeropostale. Woodhouse emphasizes the brand's appeal to a young audience and the importance of delivering authenticity. The reference to Abercrombie and Fitch's commitment to brand refresh raises questions about the extent of Aeropostale's transformation, urging curious customers to follow the brand on social media for a reintroduction.
On the flip side, the initial part of the article highlights the challenges Aeropostale faced when it initially filed for Chapter 11 bankruptcy. The brand closed 154 of its 764 stores worldwide, with accusations against Sycamore Partners, its largest lender and supplier, for causing the bankruptcy. However, Sycamore Partners denies these claims, adding a layer of complexity to Aeropostale's financial woes.
The broader context of other '90s and early 2000s teen fashion brands like PacSun, dELiA*s, Cache, and Quiksilver facing bankruptcy adds depth to the narrative. While some brands faced closure, others experienced a revival or bailout. This paints a picture of the volatile nature of the retail industry and the challenges faced by iconic brands navigating changing consumer preferences.
In conclusion, Aeropostale's journey, from bankruptcy to a planned resurgence, is a testament to the resilience and adaptability of brands in the ever-evolving retail landscape. The brand's strategic moves, coupled with a commitment to redefining its identity, indicate a proactive approach to staying relevant in the market.
