In a deal that will keep at least 125 Brooks Brothers stores open, a venture capital firm backed by Authentic Brands Group and mall operator Simon Property Group has agreed to purchase the bankrupt retailer for $325 million.
The co-owned firm, SPARC Group LLC, made a $305 million stalking horse bid for the retailer in July. Brooks Brothers, which was founded in 1818, currently operates 200 stores in North America and 500 locations worldwide in 45 countries. No information was available on the locations of the 125 “saved” stores. Brooks Brothers declared bankruptcy earlier in July, pummeled by both COVID-19 and changes in consumer purchasing patterns for apparel.
WHP Global had expressed interest in buying the iconic retailer, but withdrew from consideration after Brooks Brothers selected SPARC as its stalking horse, according to the Wall Street Journal.
The transaction is subject to bankruptcy court and other regulatory approvals, with a hearing scheduled for Aug. 14. If all conditions are met, the transaction is expected to be completed by the end of August.
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