(Bloomberg) – Brooks Brothers Group Inc. received an offer backed by Authentic Brands Group LLC, the owner of Barneys New York, and the owner of Simon Property Group Inc., shopping mall to buy the bankrupt men’s clothing chain and keep it on the business.
Backed by Authentic and Simon, Sparc Group LLC 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 promised to acquire at least 125 stores in its so-called stalking offer, which sets a minimum price for the auction. A higher offer could still emerge before the August 5 deadline.
The Sparc deal comes with a separation fee of $ 9.1 million and up to $ 1 million in expenses if the stalking horse doesn’t win the auction, according to court documents.
Authentic specializes in reviving ramshackle brands, including Aéropostale and Nautica. Sparc manages more than 2,600 retail stores, in-store stores and an e-commerce platform, the company said.
Brooks Brothers said on July 8 when it filed for bankruptcy that it plans to permanently close 51 Brooks Brothers stores in the US It has 500 worldwide in 45 countries, with 200 in North America.
Bloomberg previously reported that Authentic and Simon were positioning themselves to own the 200-year-old chain. WHP Global, another brand manager who owns the name plates of Joseph Abboud and Anne Klein, had already shown interest in offering a bankruptcy loan.
Read more: Brooks Brothers goes bankrupt in business clothes losing favor
The case is Brooks Brothers Group Inc., 20-11785, United States Bankruptcy Court for the District of Delaware.
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