Bankrupt Brooks Brothers Gets Rescue Takeover Bid

(Bloomberg) — Brooks Brothers Group Inc. received a bid backed by Authentic Brands Group LLC, the owner of Barneys New York, and mall owner Simon Property Group Inc. to buy the bankrupt men’s clothing chain and keep it in business.Sparc Group LLC, which is backed by Authentic and Simon, agreed to a $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 Aug. 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 specializes in reviving beaten-down brands, including Aéropostale and Nautica. Sparc runs more than 2,600 retail stores, shop-in-shops and an ecommerce platform, the company said.Brooks Brothers said on July 8 when it filed for bankruptcy that it plans to permanently shut 51 Brooks Brothers stores in the U.S. 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.Read More: Brooks Brothers Goes Bust With Business Clothes Losing FavorThe case is Brooks Brothers Group Inc., 20-11785, U.S. Bankruptcy Court for the District of Delaware.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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