Simon, Authentic Brands team up with offer for Brooks Brothers

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Simon, Authentic Brands team up with offer for Brooks Brothers

By Marianne Wilson - 07/24/2020

The nation’s biggest mall owner is once again partnering to help save a bankrupt retailer.

Sparc Group LLC, which is made up of Simon Property Group and Authentic Brands Group, has made a $305 million stalking horse bid for  Brooks Brothers. The offer, which is subject to higher bids and court approval, is to purchase substantially all the retailer’s global business operations as a going concern and a commitment to keep at least 125 of Brooks Brothers’ stores open for business.

Sparc may face some competition, however, in its bid to take over the iconic retailer.  A group of Italian investors — Club Deal 8 (CD8) — is expected to present a bid, according to a report by WWD. https://wwd.com/business-news/financial/club-deal-8-said-eyeing-bid-on-brooks-brothers-on-aug-1203687087/   WHP Global, the new brand management firm that to date has  purchased Anne Klein and Joseph Abboud, is also still interested in buying  Brooks Brothers, the report said.

The oldest apparel company in the U.S., Brooks Brothers filed for bankruptcy on July 8 with an eye to emerging under a new owner. The company, which was founded in 1818, had more than 200 stores in the United States and Canada, and 500 worldwide in 45 countries.

Prior to making the officer, Simon and ABG came together to give Brooks Brothers an $80 million no-interest, debtor-in-possession loan to carry Brooks Brothers through its restructuring while it looked for a buyer. 

This is not the first time Simon and ABG have joined forces.  Most recently, Simon and ABG put up a stalking-horse bid of $191 million for the bankrupt Lucky Brand’s assets, which is still subject to court approval. In 2016, the two firms joined forces to buy Aeropostale out of bankruptcy. And, in a deal with Brookfield Property Partners, they acquired Forever 21 out of bankruptcy last year. 

A court hearing to approve the stalking horse bid for Brooks Brothers and bidding procedures will take place on August 3, 2020. The company is requesting that the deadline for competing offers be set for August 5, 2020 and that a hearing to approve the sale take place on August 11, 2020.
 

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