Aeropostale, Inc. (OTC Pink: AROPQ) is a specialty teen apparel retailing, which is currently in the grips of bankruptcy. The teen clothing retailer is seeing shares rally 54%, during afternoon trading on Wednesday, August 31, 2016. Over the past month, Aeropostale, Inc has seen average daily volume of around 1.2 million shares. However, nearly 1.48 million shares or dollar volume of $82,880 has already exchanged hands during afternoon trading Wednesday.

Shares of Aeropostale, Inc are soaring today, after the bankrupt retailer was rescued in a joint venture to keep essentially keep as many as 229 Aeropostale, Inc stores. General Growth Properties Inc and Simon Property Group Inc were seeking a going concern bid that would have given Aeropostale, Inc enough cash to cover bankruptcy fees, expenses, etc. The bid amount for the 229 stores is not publically known at this time, but the company says they have a back up plan if the bids with Simon Property and General Growth Properties falls through. Hilco Merchant Resources LLC, Gordon Brothers Retail Partners LLC, and Authentic Brands Group says they are planning to place a bid to obtain Aeropostale, Inc’s chain merchandise and intellectual property. Here is a Bloomberg article detailing of the news:

Aeropostale, Inc News:

Aeropostale Inc., the bankrupt teen clothing chain, says a joint venture including General Growth Properties Inc. and Simon Property Group Inc. has bid for “substantially all” its assets with an eye toward keeping at least 229 stores open.

The so-called going concern bid would also cover expenses including Aeropostale’s bankruptcy financing, the company said in a filing late Tuesday in Manhattan federal court. The amount of the bid wasn’t disclosed. The auction, which has been going all week, will continue Wednesday, according to the filing.

New York-based Aeropostale filed for Chapter 11 protection in May, joining other mall-based retailers that have struggled to compete with big-box chains, online merchants and “fast fashion” rivals.

The company, which had about 800 locations in the U.S. and Canada before it filed, also accused lender Sycamore Partners of using a supplier it controlled to steer the chain into bankruptcy and buy it on the cheap. Last week, the bankruptcy judge shot down that contention and said Sycamore could take part in the auction, bidding with about $150 million in debt it is owed in lieu of putting up cash.

The bid announced Tuesday also comes with a backup plan: If it isn’t chosen as the “best and highest” offer, joint venture members Hilco Merchant Resources LLC, Gordon Brothers Retail Partners LLC and Authentic Brands Group will bid on the chain’s merchandise and intellectual property.

Aeropostale shares jumped as much as 49 percent Wednesday morning.

The case is In re Aeropostale Inc., 16-11275, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

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