Brooks Brothers announced that Authentic Brands Group and SPARC Group LLC were the winning bidders for the suiting company, which filed for Chapter 11 bankruptcy last month.
ABG and SPARC increased its initial offer of $305 million to $325 million, and agreed to keep at least 125 retail locations operating.
ABG, a retail management company, and SPARC, a joint venture between ABG and mall owner Simon Properties, have previously worked together to purchase distressed retailers like Aeropostale and Juicy Couture.
WHP Global, another retail management company, was also interested in the sale but bowed out of the race on August 10.
Brooks Brothers announced on Tuesday evening that Authentic Brands Group and SPARC Group LLC were selected as the winning bidders in the sale of the bankrupt suiting company for $325 million. The purchase requires bankruptcy court approval. The buyers have also committed to continue operating at least 125 Brooks Brothers retail locations.
Authentic Brands Group is a retail management company that purchases distressed retailers who enter into Chapter 11 bankruptcy. The company’s portfolio includes well-known brands like Barneys, Juicy Couture, and Frye. SPARC is a joint venture backed by Authentic Brands Group and mall owner Simon Properties. The two companies have previously come together under SPARC to purchase Forever 21 and Aeropostale, and entered into an asset purchase agreement with Lucky Brand in July.
SPARC and ABG first expressed interest in purchasing America’s oldest clothing company in early July. Their initial bid for Brooks Brothers was for $305 million and also included the commitment to acquire at least 125 Brooks Brothers retail locations, which secured the group as the stalking horse bid. WHP Global, another retail management company, was also interested in purchasing Brooks Brothers but bowed out of the race on August 10.
Brooks Brothers filed for Chapter 11 bankruptcy on July 8. The company was founded in 1918 and survived numerous tumultuous eras in U.S. history, from the civil war to the Great Depression. But as workwear has become increasingly casual in recent years and sales have moved online, the company has faltered. The coronavirus pandemic has both accelerated these trends and stressed retailers that relied on brick and mortar sales. Brooks Brothers was not immediately available for comment on news of the sale.
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Source:: Business Insider