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Bloomberg
The race to purchase Brooks Brothers Group Inc out of bankruptcy is on as brand manager WHP Global and a group of Italian companies prepare bids following Authentic Brands Group LLC and Simon Property Group Inc’s $305 million offer.
Sparc Group LLC, which is backed by Barneys New York owner Authentic and mall landlord Simon, agreed to make a $305 million bid in a court-supervised auction for Brooks Brothers’ global business operations, according to a statement.
The group has committed to take on at least 125 of the clothing stores in its so-called stalking-horse bid, which sets a minimum price for the auction. A higher bid could still emerge before an August 5 deadline as other firms prepare competing offers.
WHP Global, which owns the Joseph Abboud and Anne Klein brands, is preparing a bid for the retailer’s assets, the firm confirmed in a statement to Bloomberg.
“It’s early innings in the Brooks Brothers bankruptcy sale process,†and “we are big believers in the power of the Brooks Brothers brand, the global footprint and the management team,†said Yehuda Shmidman, chief executive officer of WHP.
Backed by funds managed by Oaktree Capital and BlackRock, WHP was originally named the lender on Brooks Brothers’ bankruptcy loan before Authentic and Simon submitted a competing offer that ultimately won out.
A group of Italian companies, including Giglio Group SpA, is also working on an offer, according to spokesman for Giglio in Milan.