Bankrupt upscale apparel retailer Brooks Brothers Group is reportedly about to be sold to a partnership that includes Authentic Brands, which owns brands such as Barneys New York and Forever 21, and mall operator Simon Property Group (SPG) - Get Simon Property Group, Inc. Report.
Authentic and Simon are expected to be the winners of Brooks Brothers' court-supervised bankruptcy auction with a bid of $305 million, according to multiple reports.
Fellow retail brand manager WHP Global pledged $75 million to finance Brooks Brothers through its bankruptcy. But the company has reportedly dropped its bid for the company, according to Fox Business.
The deadline to submit bids for the company was Aug. 5.
A high debt load mixed with the lockdowns brought about by the coronavirus pandemic forced Brooks Brothers, one of the country's oldest retailers, to declare bankruptcy in July. The prestigious retailer has been around since 1818.
The company at the time said that it had been in strategic discussions about the future of the company for a year before its decision to declare bankruptcy.
“We are in the process of identifying the right owner, or owners, to lead our iconic Brooks Brothers brand into the future,” a spokesperson told CNBC.
The company decided to close 51 of its 250 North American stores due to the pandemic. Brooks Brothers has more than 500 stores in 45 countries worldwide.
Authentic Brands and Simon Property made their $305 million bid less than three weeks after the company declared bankruptcy.
The pair committed to take on at least 125 stores in its stalking-horse bid, which sets a minimum price for an auction.
Simon Property shares rose almost 7% to $69.96 on Tuesday.