A familiar team is vying for the bankrupt men’s clothier Brooks Brothers Group.
An entity backed by Authentic Brands Group and Simon Property Group submitted a $305 million bid as part of a court-supervised auction for the troubled brand, Bloomberg reported. Brooks Brothers announced its Chapter 11 bankruptcy July 8.
Their offer, known as a stalking horse bid, establishes a minimum price for the auction. Brooks Brothers has until Aug. 5 to find a higher bidder. Any bid other than the stalking horse would include a break-up fee of $9.1 million plus expenses of as much as $1 million.
When Brooks Brothers filed for bankruptcy, it said it would close 51 U.S. stores out of its global portfolio of 500 spread over 45 countries. Some 200 are in North America.
The brand’s decline began well before the coronavirus. It struggled first with the shift to casual office wear and then with changing consumer habits as many switched to online shopping. Then the pandemic kept customers away from brick-and-mortar retailers. [Bloomberg] — Georgia Kromrei