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Investment firm Versa Capital Management LLC did not submit a
bid for the business, the people said. Versa had been preparing
a stalking horse offer for Aeropostale as a going concern
business, and the retailer had received court approval to pay
some of the expenses incurred by Versa in putting together the
proposal.
A U.S. bankruptcy court judge on Friday issued a decision siding
with Sycamore in its fight with Aeropostale, who accused the
firm of conducting a "loan to own" scheme and pushing the
retailer into bankruptcy. Aeropostale had asked the judge to bar
Sycamore from using the $150 million it is owed as credit to bid
in the auction, but the judge denied that request.
Sycamore and Versa declined to comment. The sources were not
identified because they were not authorized to speak to the
media.
In a statement, Aeropostale said it is disappointed with the
court's decision.
"Aeropostale stands by the accuracy and truthfulness of
everything said and documented by it during the proceedings,"
the company said.
Bids for the company were due on Thursday, and an auction is
scheduled to be held on Monday, Aug. 29. It is unclear what
Sycamore's plans are for the business, should it win the
auction.
Aeropostale also received bids for some of its leases and its
GoJane.com business, a shoe and apparel shopping site, said one
of the people.
Aeropostale filed for bankruptcy in May amid slumping sales and
intense competition from fast fashion retailers.
At least five U.S. teen retailers, including Wet Seal LLC and
Pacific Sunwear of California Inc <PSUNQ.PK>, have filed for
bankruptcy in the past two years, as the spending habits of
young people shift and they visit malls less often.
(Reporting by Jessica DiNapoli; Editing by Dan Grebler, Bernard
Orr)
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