American classic clothing brand Brooks Brothers, Inc. announced on Thursday that it has filed an application with the Bankruptcy Court for the District of Delaware to approve a $305 million merger with retailer SPARC Group LLC (hereinafter referred to as SPARC). The U.S. dollar horse bidding agreement means that any other company’s bid must be higher than SPARC’s bid.
Note: Stalking horse bid refers to a buyer selected by a company filing for bankruptcy protection. Initial public bidding for the acquisition. The move could attract more potential buyers to offer competitive takeover prices and prevent bankrupt companies from being forced to accept bids that are too low, as rules require all buyers to bid upwards.
Brooks Brothers said in a statement that under the terms of the agreement, U.S. brand management company Authentic Brands Group LLC (hereinafter SPARC, which is partially owned by ABG, plans to acquire Brooks Brothers’ entire global business, including at least 125 of its retail stores.
Currently, Brooks Brothers is waiting for the judge to approve the above-mentioned “fake horse bidding” agreement, and there may be other buyers Make a higher offer.
It is reported that the court will hold a hearing on August 3 to follow the process of approving the fake horse bidding. SPARC requested an August 5 deadline for bids and a final sale hearing on August 11.
SPARC is a full-service retail operator whose platform supports the operation of more than 2,600 retail stores. The company has many wholesale customers in North America, South America, Europe and the Asia-Pacific region. As the operating partner for ABG’s Aeropostale and Nautica brands, SPARC manages a business with global annual retail sales in excess of $2.7 billion.
Last week, Brooks Brothers received an $80 million zero-interest and no-fee loan to restructure Funding. The loan was provided by ABG-BB LLC, a joint venture between ABG and commercial real estate company Simon Property Group Inc.
Brooks Brothers filed for bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware on July 8. Several potential buyers Everybody is competing to buy. (See the historical report of the brothers account for details: The oldest clothing brand in the United States filed for bankruptcy and has provided clothing for 40 U.S. presidents!) Among them, emerging brand management companies WHP Global and ABG are considered to be the strongest bidders for Brooks Brothers. In fact, WHP Global provided $75 million in debtor-in-possession financing to Brooks Brothers when it filed for protection.
Yehuda Shmidman, chairman and chief executive officer of WHP Global, said Thursday: “These are the early stages of the sale of Brooks Brothers, and the next key point is the day of the auction. Our company strongly believes in the strength of the Brooks Brothers brand and its management team. , I am looking forward to the competition at the auction.”
About Authentic Brands Group
ABG was founded in 2010 by Canadian businessman Jamie Salter and is headquartered in New York. It is an innovative brand management company. After acquiring an underperforming brand, ABG will carefully study its brand DNA, reposition the brand without affecting the brand value, and help the brand expand its categories so that it can regain the favor of consumers. Therefore, many industry insiders also call ABG the “good doctor” for bankrupt brands.
In August last year, the American investment management group BlackRock announced that it would acquire approximately 30% of ABG’s equity through its private equity fund Long-Term Private Capital for US$875 million to promote ABG’s business in the global field. expansion. </p
