A pedestrian walks past a closed Brooks Brothers store in New York City on July 23, 2020.CARLO ALLEGRI/Reuters
A retail venture owned by licensing company Authentic Brands Group and mall owner Simon Property Group has entered into an agreement to buy the iconic Brooks Brothers for US$305-million.
The offer from Sparc Group LLC announced late Thursday has been designated as a “stalking horse,” and is subject to court approval and any higher or better offers as part of the company’s auction process. A court hearing to approve the bid has been set for Aug. 3. and competing offers are due by Aug. 5. The sale process is expected to take place Aug. 11.
The 200-year-old, New York-based clothier, which has dressed nearly every U.S. president, filed for Chapter 11 bankruptcy earlier this month. At the time, it had more than 200 stores.
Under the terms of the agreement, Sparc intends to purchase substantially all the company’s global business operations as a going concern. Sparc has also committed to acquiring at least 125 Brooks Brothers retail locations.
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