Brooks Brothers, America’s oldest apparel company, today announced that it has filed a motion in the United States Bankruptcy Court for the District of Delaware to obtain court approval of an asset purchase agreement with stalking horse bidder SPARC Group LLC (“SPARC”).
Under the terms of the agreement, SPARC intends to purchase substantially all the Company’s global business operations as a going concern for $305 million. SPARC has also committed to acquiring at least 125 Brooks Brothers retail locations. The agreement is subject to court approval and any higher or better offers as part of the Company’s ongoing auction process.
SPARC is a full-service retail operator with a multi-brand platform that supports over 2,600 retail stores and shop-in-shops, a robust eCommerce platform, and leading wholesale accounts in North America, South America, Europe, and Asia Pacific. As the dedicated operating partner for the Aéropostale and Nautica brands, SPARC supports over $2.7 billion in global retail sales annually.
SPARC is partially owned by Authentic Brands Group (ABG), a global brand development, marketing, and entertainment company, which owns a portfolio of more than 50 media, entertainment, and lifestyle brands including Aéropostale and Nautica.
A court hearing to approve the stalking horse bid and bidding procedures will take place on August 3, 2020. The Company is requesting that the deadline for competing offers be set for August 5, 2020 and that a hearing to approve the sale take place on August 11, 2020.