Many mall brands have been going bankrupt lately. Specifically, teen mall brands and department stores. Some mall brands are even being bought by others or putting themselves up for sale to pay off debt. Today I’ve written a guide to the most notable mall brands that have and are going bankrupt.
American Apparel filed for chapter 11 bankruptcy in 2015. The brand said it expected to lower its debt from $300 million to $135 million. Lenders were said to be providing about $90 million in financing and $70 million in capital. The brand filed for bankruptcy again last year and listed its assets and liabilities between $100 million and $500 million. Then, Canadian apparel company Gilden Activewear Inc. won an auction to buy the brand’s assets for $88 million in cash. American Apparel is currently liquidating its inventory an all 110 stores will close.
Read the full article here on Forbes.
Aeropostale filed for chapter 11 bankruptcy last year in May. The brand said it would close 154 stores in the United States and Canada. It listed its assets at $354 million while its debt is at a total of $390 million and has secured $160 million in financing. A couple of months later a retail group led by Simon Property Group Inc. and General Growth Properties Inc. won an auction for the assets of Aeropostale Inc. The group purchased the brand for $245 million with a pan to keep 229 stores open. That is a much lower amount than the 646 stores that would have remained open if only 154 stores were closed. The brand also seemed to be liquidating its inventory. The brand was offering 70% off everything and began doing it online as well. Then, just before Christmas, the brand began offering 75% off everything online and in stores. The brand offered this for the holidays and a couple of weeks after. The brand also filed with the U.S. Bankruptcy Court to change its corporate name to “ARO Liquidation”.
Read the full article here on The Wall Street Journal.
Abercrombie & Fitch
Last month Abercrombie & Fitch announced that the brand wasn’t in talks to sell itself. The brand said it was in talks with a couple of companies after the companies said they were interested. The brand also said the talks may not result in an agreement to sell. In March, the brand reported a 7% decline for the fourth quarter fiscal 2016.
Read the full article here on The New York Times.
BGBG Max Azria
BCBG Max Azria filed for bankruptcy earlier this year in March. The company listed its assets from $100 million to $500 million and its liabilities from $500 million to $1 billion. The company said in statement that it has received a commitment of $45 million in debtor processing. That money will be used for working capital so that the company can continue to operate during bankruptcy. The company has reportedly informed mall owners of its plans to close most of its 200 U.S. stores. The company will also be closing stores in Canada in addition to the 120 stores the brand said it would close in January.
Read the full article here on Reuters.
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