Simon, Authentic Brands to buy Brooks Brothers

Investors, among the most active in the struggling retail sector, are paying $325M

New York /
Aug.August 12, 2020 08:08 AM
Authentic Brands Group CEO Jamie Salter, David Simon and Brooks Brothers (Getty)

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

Brooks Brothers has found its white knight in mall giant Simon Property Group and apparel licensing firm, Authentic Brands Group.

A venture between the two companies, known as Sparc Group, has agreed to buy the retailer for $325 million, the Wall Street Journal reports. Brooks Brothers will close 75 of its 200 stores as part of the deal.

Sparc submitted a $305 million stalking horse bid last month. Brooks Brothers, which filed for Chapter 11 bankruptcy in early July, had until Aug. 5 to find a higher offer.

Brand management firm WHP Global was reportedly interested in making a bid before Sparc’s offer was finalized.

Sparc has previously acquired retailers such as Aéropostale, Forever 21 and Nautica. Separately, the partners also have a long track record of scooping up troubled chains.

Authentic Brands acquired Barneys last year, and Simon Property is said to be considering buying J.C. Penney.

[WSJ] — Erin Hudson


Related Articles

arrow_forward_ios
Fritz Kaegi

Higher tax bills cometh for commercial landlords in south, west suburbs

Higher tax bills cometh for commercial landlords in south, west suburbs
66 Orland Square with GW Properties CEO Mitch Goltz and BlitzLake Partners CEO David Blitz (Google Maps)

Facing foreclosure, GW Properties hands over Orland Park shopping center

Facing foreclosure, GW Properties hands over Orland Park shopping center
Mayor Lori Lightfoot and a restaurant in downtown Chicago (Getty)

Chicago to ease capacity limits, open bars

Chicago to ease capacity limits, open bars
The former Target in Calumet City will be converted into a working farm (Google Maps)

For latest retail redevelopment, old Target will become new farm

For latest retail redevelopment, old Target will become new farm
The Chicago Loop’s retail vacancy rate could eclipse 20% this year, by some estimates (Photo by Interim Archives/Getty Images)

“There’s going to be pain, and people are going to get hurt”: Chicago retail’s ugly future

“There’s going to be pain, and people are going to get hurt”: Chicago retail’s ugly future
Governor of Illinois J. B. Pritzker (Credit: Joshua Lott/Getty Images)

State offers lifeline to devastated hospitality industry

State offers lifeline to devastated hospitality industry
Illinois Gov. J.B. Pritzker with Jimmy Choo and Disney in Magnificent Mile (Credit: Lt. Col. Bradford Leighton via Wikipedia Commons, Google Maps)

Protected with plywood: Retailers board up shops along Mag Mile

Protected with plywood: Retailers board up shops along Mag Mile
Governor J.B. Pritzker (Credit: Joshua Lott/Getty Images)

Chicago’s gyms, movie theaters, bowling alleys prepare for severe restrictions

Chicago’s gyms, movie theaters, bowling alleys prepare for severe restrictions
arrow_forward_ios

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

Loading...