Bankrupt Brooks Brothers gets rescue takeover bid
Brooks Brothers Group has received a bid backed by Authentic Brands Group, the owner of Barneys New York, and mall owner Simon Property Group to buy the bankrupt clothing chain and keep it in business.
Sparc Group, which is backed by Authentic and Simon, agreed to a US$305 million bid in a court-supervised auction for the company’s global business operations, according to a statement.
The group has committed to take on at least 125 stores in its so-called stalking-horse bid, which sets a minimum price for the auction. A higher bid could still emerge before an August 5 deadline.
The agreement with Sparc comes with a $9.1 million break-up fee and up to $1 million in expenses if the stalking horse doesn’t win the auction, according to court papers.
Authentic specialises in reviving beaten-down brands, including Aeropostale and Nautica. Sparc runs more than 2600 retail stores, shops-in-shops and an e-commerce platform.
Brooks Brothers said on July 8 when it filed for bankruptcy that it plans to permanently shut 51 Brooks Brothers stores in the US. It has 500 worldwide in 45 countries, with 200 in North America.
Bloomberg reported earlier that Authentic and Simon were positioning themselves to own the 200-year-old chain. WHP Global, another brand manager that owns the Joseph Abboud and Anne Klein nameplates, had already shown interest by offering a bankruptcy loan.
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