US men’s wear retailer Brooks Brothers has new owners after the completion of a US$325m offer tabled by Authentic Brands Group (ABG) and Sparc Group.
The deal, announced last month, includes the vast majority of the bankrupt retailer’s global business operations as well as its intellectual property portfolio.
Authentic Brands Group (ABG) already owns brands including Aéropostale and Nautica, while Sparc Group – the dedicated operating company for ABG-owned brands – operates more than 2,600 retail stores, shop-in-shops and an ecommerce platform, and supports over $2.7bn in global retail sales annually. Sparc is partially owned by Authentic Brands Group (ABG), whose 50 lifestyle brands also include Juicy Couture, Vince Camuto, Herve Leger, Barneys New York and Nine West.
“Brooks Brothers comes at an important time in ABG’s development as we are placing a significant emphasis on growing our retail and e-Commerce footprint,” says Jamie Salter, founder, chairman, and CEO of ABG. “We see a great opportunity to strategically expand this powerhouse brand across the globe.”
Through the transaction, Sparc assumes the role of core licensee for Brooks Brothers, and will manage all its operations, including retail, wholesale and e-commerce. ABG, meanwhile, has purchased the intellectual property and will oversee all licensing partnerships, new business and brand development.
Brand marketing, which will focus on adapting Brooks Brothers for a new generation through enhanced creative, engaging with and growing its following online and launching a fresh slate of collaborations, will be shared by ABG and Sparc.
“Brooks Brothers’ new structure is another example of how ABG and Sparc are innovating the traditional brand model,” adds Marc Miller, CEO of Sparc. “Our strategic partnership will allow us to leverage the tremendous equity of this quintessential American brand through key partnerships, dynamic marketing and cutting-edge product design.”
Brooks Brothers filed for Chapter 11 bankruptcy protection in July after being hit by falling sales and declining demand for its business attire. The privately held company also announced plans to close 51 of its 250 US stores.
Authentic Brands Group and Sparc have also added Los Angeles-based denim specialist Lucky Brand to their portfolio in the past month.