Has Bankrupt Brooks Brothers Found a 'Suitor'?
The Brooks Brothers name and label will apparently live on.
Bankrupt Brooks Brothers has received a $305 million bid backed by Authentic Brands Group, owner of Barneys New York and mall owner Simon Property Group (SPG) - Get Report that would keep the 200-year-old clothing retailer in business.
Sparc Group, which is backed by Authentic and Simon, has agreed to the $305 million bid for the 200-year-old company’s operations, including its stores and its three U.S. manufacturing facilities.
Authentic specializes in resuscitating out-of-favor brands, including Aéropostale and Nautica. Sparc runs more than 2,600 retail stores, shop-in-shops and an ecommerce platform.
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.
WHP Global, meantime, another retail brand manager that has already pledged $75 million to finance Brooks Brothers through its bankruptcy, also is assembling its own buyout offer.
The company, which owns the Joseph Abboud and Anne Klein nameplates, could produce a competing offer before an Aug. 5 deadline.
Brooks Brothers filed for bankruptcy earlier this month after more than two centuries in business, another victim of the coronavirus pandemic and forced shutdown that has decimated the brick-and-mortar retail industry.
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