Authentic Brands Group (ABG) and Simon Property Group have submitted a bid of more than $300 million to acquire the financially distressed clothing retailer, Brooks Brothers. In an effort to rescue the iconic American brand, the bid includes plans to save a minimum of 125 of its stores. Brooks Brothers, the oldest apparel company in the United States, filed for Chapter 11 bankruptcy earlier this month, signaling the impact of the ongoing economic crisis on the retail industry.

The purchase agreement with ABG/Simon’s Sparc Group LLC, identified as the stalking horse bidder, has been filed in the United States Bankruptcy Court for the District of Delaware. However, the acquisition is subject to court approval. Sparc Group intends to secure “substantially all of the company’s global business operations as a going concern” by investing $305 million. As part of the deal, Sparc Group has committed to purchasing a minimum of 125 retail locations. It is worth noting that Brooks Brothers previously operated 200 stores across North America and 500 worldwide, spanning 45 countries.

While the agreement awaits court approval, other potential buyers still have the opportunity to submit higher or better offers until August 5. Consequently, there is still a chance for additional bidders to emerge and compete for the acquisition of the troubled retailer.

Sparc Group, a self-proclaimed “full-service retail operator,” not only expresses interest in acquiring Brooks Brothers but also in acquiring the assets of Lucky Brand. In its role as the operating partner for ABG’s Aéropostale and Nautica brands, Sparc Group plays a significant role in supporting over $2.7 billion in global retail sales annually.

In conclusion, the joint bid from Authentic Brands Group and Simon Property Group has offered a glimmer of hope for Brooks Brothers, a struggling retailer that has been significantly impacted by the economic downturn caused by the pandemic. Pending court approval, this deal has the potential to save a significant number of stores and preserve the brand’s legacy. However, the final outcome still remains uncertain until other potential buyers have submitted their bids.

For more information on the bankruptcy filing of Brooks Brothers and its potential acquisition, you may refer to the following links:

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