Bankrupt Brooks Brothers gets $305M stalking-horse bid

Authentic, Simon plot as retailer plans to close 51 US stores

National /
Jul.July 24, 2020 09:00 AM
Authentic Brands Group CEO Jamie Salter and Simon Property Group CEO David Simon with Brooks Brothers (Getty)

Authentic Brands Group CEO Jamie Salter and Simon Property Group CEO David Simon with Brooks Brothers (Getty)

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.

Simon Property Group, the country’s largest mall operator, has frequently paired with Authentic Brands to rescue bankrupt retailers.

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 


Related Articles

arrow_forward_ios
Confidence is lowest in the Northeast and Midwest, at 73 and 70. (iStock)
Homebuilder sentiment slides to 10-month low in June
Homebuilder sentiment slides to 10-month low in June
The Savoy Hotel in London, UK in 1980 (Getty)
UK hospitality employers could cut half a million jobs
UK hospitality employers could cut half a million jobs
The commercial market was hit hard by the pandemic, and property tax revenue is expected to fall 5 percent. (iStock)
Tax bills show how much Covid devalued NYC real estate
Tax bills show how much Covid devalued NYC real estate
Employers project 62 percent of workers will come back to Manhattan offices in September (iStock)
Over 60% of Manhattan office workers will return in September: survey
Over 60% of Manhattan office workers will return in September: survey
(iStock)
NY’s rent relief program launches, with glitches
NY’s rent relief program launches, with glitches
The colorful Prizm Outlet in Nevada. (Prizm Outlet via Facebook)
Mall short-sellers see a big payout from Nevada mall auction
Mall short-sellers see a big payout from Nevada mall auction
What is the future of Times Square?
What is the future of Times Square?
What is the future of Times Square?
Sen. Brian Kavanagh (Getty, New York Senate)
Lawmakers propose tweaks to rent relief program, foreclosure protections
Lawmakers propose tweaks to rent relief program, foreclosure protections
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...