WHP Global Inc. Trademark Licensing Company has bowed out of competition for Brooks Brothers Inc., according to people familiar with the matter, leaving a venture backed by clothing licensing firm Authentic Brands Group LLC and commodity owner Simon Property Group Inc. to take control of a bankrupt retailer.
Like Authentic Brands, WHP Global buys consumer brands, often out of bankruptcy, and revives them by throwing away useless sites.
Sparc Group LLC, the company Authentic Brands-Simon, had offered $ 305 million to Brooks Brothers last month. That “horse horse” offer includes a commitment to keep 125 Brothers Brothers stores open. The retailer has nearly 200 stores in North America. Sparc’s bid had been subject to the best bids, but the deadline for rival bids expired last week.
A Brooks Brothers spokeswoman declined to comment.
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WHP and Sparc had tried to buy Brooks Brothers before the salesperson filed for bankruptcy.
WHP had submitted a $ 334 million bid for the Brooks Brothers in July, but the retailer estimated that Sparc’s offer was a better deal. The firms also competed to secure a Brooks Brothers loan to fund its bankruptcy proceedings, a battle won by Sparc.
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With that in mind, WHP decided not to move forward with its offer, well-known people said.
Sparc owns hundreds of stores Aéropostale, Forever 21 and Nautica. WHP, founded in 2018 with support from Oaktree Capital Management LP, has acquired the Joseph Abboud and Anne Klein brands split from distressed parent companies.
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The Brooks brothers filed for bankruptcy last month after more than two centuries in business, unable to cope with store closures due to the coronavirus pandemic. The company has struggled in recent years with a shift towards more casual dress styles at work.
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