Versa Eyes Aeropostale Takeover by PitchBook
Versa Capital Management is negotiating the possible acquisition of bankrupt teen-apparel retailer Aeropostale in a deal that would keep open many of the chain’s locations, according to reports. Versa would purchase Aeropostale’s inventory and assume 500 of its store leases, most of which are located at shopping malls across the US. A loan dispute with Sycamore Partners helped push Aeropostale into bankruptcy earlier this year, with a trial adjudicating the matter scheduled for later this month.
Versa’s interest in Aeropostale can’t come as a huge surprise. After all, the firm has some experience in the distressed teen-retailer space: Last April, it acquired The Wet Seal, another bankrupt member of the genre, allowing the business to continue operating its 173 brick-and-mortar stores and online platform. Versa’s interest in Aeropostale seems to indicate a desire to repeat that on a larger scale.
At the 2021 SALT New York conference, which was held earlier this week, one of the panels on the main stage discussed the best macro shifts coming out of the pandemic and investing in value amid distress. The panel featured: Todd Lemkin, the chief investment officer of Canyon Partners; Peter Wallach, the managing director and Read More
More data on PE investor activity in US retail is available to PitchBook users here.