A pedestrian wearing a mask passes a Brooks Brothers store closed during the COVID-19 crisis on May 6, 2020 in Vancouver, Canada.
Andrew Chin | fake pictures
A company known as Sparc LLC, which is comprised of American mall owner Simon Property Group and apparel licensing firm Authentic Brands Group, is bidding $ 305 million for the Brooks Brothers bankruptcy, it said Thursday. a court filing.
The offer, still subject to better and higher offers and court approval, is to keep at least 125 of Brooks Brothers stores open for business, according to the document.
A court hearing to approve the offer is set for August 3, while other competing offers must be submitted by August 5, according to the filing. A hearing to approve the final sale of the Brooks Brothers assets is scheduled for August 11.
Simon, who is the largest US mall owner because of the number of shopping malls it operates, had already partnered with ABG to provide financing to lead Brooks Brothers through its restructuring, while the retailer was looking for a buyer. . A $ 80 million loan from the duo that refers to itself as Sparc came, in a rare arrangement, with no interest or fees.
Brooks Brothers, known as the pioneer of the polished polo shirt and uniform, applied for Chapter 11 bankruptcy protection from creditors earlier this month on July 8. At the time, it had approximately 250 locations in North America.
This is also not the first time that Simon and ABG have worked together. More and more they seek to do it, now through this entity Sparc. With ABG bringing manufacturing and licensing experience, Simon brings real estate experience.
ABG and Simon together submitted a stalking offer of $ 191 million for the assets of bankrupt denim maker Lucky Brand, which is still subject to court approval.
Before Sparc was formed, ABG and Simon teamed up in 2016 to buy the bankrupt teen clothing retailer Aeropostale. And, in a deal with the owner of the Brookfield Property Partners shopping center, they acquired Forever 21 from bankruptcy last year.
Owners of America’s largest shopping malls are increasingly seeking deals to rescue retailers affected by the coronavirus pandemic, CNBC reported. Dozens have presented, including JC Penney, Neiman Marcus, J.Crew, the parent company of New York & Co. RTW Retailwinds and the parent of Ann Taylor Ascena Retail Group.
In many cases, as it develops, these bankrupt retailers are the main tenants in shopping malls, with a large number of stores. Meanwhile, some of the largest retail real estate owners in the country, like Simon, are in cash. A lot of that. On June 29, in an investor update, Simon said he had approximately $ 8.5 billion of liquidity on his balance sheet, including about $ 3.5 billion in cash. Issued another $ 2 billion in senior guaranteed notes on July 7.
ABG also manages brands like Barneys New York, Nautica and Nine West, according to its website.
Simon’s stock fell nearly 59% this year. The company has a market capitalization of $ 18.9 billion.
Read more: Here is the full press release from Brooks Brothers
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