Authentic Brands Group (ABG), owner of Aéropostale and Nautica, and Sparc Group have been selected as the winning bidders for bankrupt men’s wear retailer Brooks Brothers after increasing their offer to US$325m.
The deal includes the vast majority of the company’s global business operations as a going concern as well as its intellectual property portfolio.
Sparc has also committed to continue operating at least 125 Brooks Brothers retail locations as part of the agreement, which follows an initial $305m takeover bid submitted by the firm last month.
Sparc Group already operates more than 2,600 retail stores, shop-in-shops and an ecommerce platform, and supports over $2.7bn in global retail sales annually. It 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.
It is also currently involved in a stalking horse asset purchase agreement to buy most of the assets of denim specialist Lucky Brand Dungarees.
Brooks Brothers filed for Chapter 11 bankruptcy protection last month after being hit by falling sales and declining demand for its business attire. The privately held company is also shuttering 51 of its 250 US stores.
Its proposed sale to ABG and Sparc is subject to court approval and the satisfaction of customary closing conditions, including regulatory approval. The hearing to approve the sale is currently scheduled for 14 August and, provided closing conditions are satisfied, the transaction is expected to be completed by the end of this month.