Brooks Brothers Inc. announced Thursday it was seeking a bankruptcy court’s permission to enter an asset purchase deal with Sparc Group LLC, a joint venture between the Barneys and Nautica brands owner Authentic Brands Group LLC and mall operator Simon Property Group Inc (NYSE: SPG).
Sparc is offering to buy all of the beleaguered retailer’s worldwide business operations for $305 billion and will continue to operate 125 of Brooks Brother’s retail locations.
A United States Bankruptcy Court for the District of Delaware is due to consider the stalking horse bid — a reference to an initial-bid on assets of a bankrupt company — as well as the bidding procedures on August 3.
The deadline for competing offers has been set for August 5 and the hearing to approve the sale would take place on August 11, 2020.
Brooks Brothers, a two-hundred-year-old retailer, commenced Chapter 11 bankruptcy proceedings earlier this month.
Why It Matters
WHP Global Inc, a rival of Authentic Brands, is also throwing its hat in the ring and bidding for Brooks Brothers, the Wall Street Journal reported.
Previously, both Sparc and WHP Global vied to extend a bankruptcy loan to the retailer. Sparc eventually went on to lend $80 million to Brooks Brothers.
Another possible contender is the Milan-based creator of fashion-related online platforms, Giglio Group SpA, which is leading a group of investors who want to transform the bankrupt firm into an exclusive web-based concern.
Photo by Phillip Pessar on Flickr.
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