It has dressed all but four presidents dating to James Madison, has been worn by Clark Gable and Andy Warhol and is the official clothier of the Jazz at Lincoln Center Orchestra. The move follows Brooks Brothers’ filing for Chapter 11 bankruptcy protection in July after it struggled against the impact of the Covid-19 pandemic and a heavy debt load. Get this delivered to your inbox, and more info about our products and services. “We’re doing our fair share for trying to keep this world as normal as we can.”. The retailer is seeking court approval of a $325 million sale to a group backed by the mall owner Simon Property Group and Authentic Brands Group, a licensing firm. © 2020 CNBC LLC. SPARC, the dedicated operating company for ABG-owned brands, will assume the role of core licensee for Brooks Brothers and will also manage its retail, wholesale and ecommerce operations. Authentic Brands Group has completed its acquisition of US business wear retailer Brooks Brothers. He said that it was acquiring inventory at or below cost, buying any intellectual property at “attractive values,” cutting the overhead costs of purchased companies and able to reject certain leases. Brooks Brothers, based in New York, is the oldest apparel brand in continuous operation in the United States, and has a rare and storied reputation. Brooks Brothers filed for bankruptcy last month. Chains including J.C. Penney, J. Like many retailers, it furloughed most of its staff — it had roughly 4,000 employees before the pandemic — and cut the salaries of corporate workers. Before the pandemic, the company operated 424 retail and outlet stores globally, including 236 in the United States, according to court documents. Proms, weddings, graduations, bar mitzvahs and other special occasions fell off calendars. Correction: A previous version of this article included text from a separate Reuters story. We see a great opportunity to strategically expand this powerhouse brand across the globe.”. Not only were its stores temporarily closed, but so were the offices of many of its customers. We want to hear from you. The move follows Brooks Brothers’ filing for Chapter 11 bankruptcy protection in July after it struggled against the impact of the Covid-19 pandemic and a heavy debt load. SPARC, a venture backed by brand manager Authentic Brands Group LLC and mall operator Simon Property Group Inc, has agreed to continue operating at least 125 Brooks Brothers retail locations as part of the deal. A.B.G. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Meanwhile, ABG will oversee all licensing partnerships, new business and brand development, although it will share the retailer’s brand marketing responsibilities with SPARC. SPARC has also bid on Lucky Brand, the denim company that filed for bankruptcy last month. You need to be logged in to use this feature. All Rights Reserved. Brooks Brothers, one of the oldest apparel retailers in the United States, filed for bankruptcy protection on July 8, 2020 as the coronavirus pandemic continues to impact businesses. Most say they plan to re-emerge with fewer stores. Brooks Brothers had already been struggling as corporate America, including Wall Street, relaxed its dress code for employees, allowing them to choose casual dressing over bespoke suits. A Division of NBCUniversal. The mall owner and A.B.G. Authentic Brands Group has completed its acquisition of US business wear retailer Brooks Brothers. The company later clinched a $305 million "stalking horse" deal with SPARC that set the floor for other offers in a bankruptcy auction. The retailer started to slip in recent years, battered by the rise of more casual workplace attire and the shift to online retail, prompting a search for new buyers or investors. Brooks Brothers, famous for its bespoke men's suits, said a hearing to approve the sale was currently scheduled for Aug. 14, with the deal expected to be completed by this month-end. THE RETAIL BULLETIN - The home of retail news, 3 September, 2020 | by The Retail Bulletin, Brooks Brothers files for bankruptcy protection, Barneys to be acquired by Authentic Brands Group, Forever 21 acquired by Authentic Brands, Simon and…, Authentic Brands hires new chief executive for Forever 21. If it is approved, the acquisition by the SPARC Group will have proceeded remarkably quickly, given that Brooks Brothers filed for bankruptcy protection on July 8. U.S. apparel retailer Brooks Brothers said late Tuesday it is likely to be acquired by Authentic Brands Group LLC and SPARC Group LLC after they increased their offer to $325 million. Before filing for bankruptcy, it had already decided to close 51 Brooks Brothers stores in the United States. Brooks Brothers said in court documents that since April 2019, its business had been marketed to more than 90 potential investors around the world. U.S. apparel retailer Brooks Brothers said late Tuesday it is likely to be acquired by Authentic Brands Group LLC and SPARC Group LLC after they increased their offer to $325 million. is known for acquiring the intellectual property of brands like Barneys New York and Sports Illustrated, then licensing their names to other companies and earning royalties from related products. have teamed up on deals to buy other bankrupt retailers in recent years, including the teen chain Aéropostale and the fast-fashion behemoth Forever 21. The retailer is seeking court approval of a $325 million sale to a group backed by the mall owner Simon Property Group and Authentic Brands Group, a licensing firm. The buyers committed to continue operating at least 125 Brooks Brothers retail locations. Crew, Neiman Marcus and the owner of Ann Taylor and Loft have filed for bankruptcy protection since May, struggling with lost sales and heavy debt loads. The retailer said that its revenue exceeded $991 million for the fiscal year that ended 2019, with about one-fifth of that coming from its North America e-commerce business. Wang Ying | Xinhua News Agency | Getty Images, Simon Property Group continues its shopping spree, looks to do more deals, The company later clinched a $305 million "stalking horse" deal with SPARC. Brooks Brothers, the venerable retailer that was founded in 1818 and filed for bankruptcy last month, said it would be sold to Simon Property Group, the biggest mall operator in the United States, and Authentic Brands Group, a licensing firm. Data is a real-time snapshot *Data is delayed at least 15 minutes. Jamie Salter, founder, chairman and chief executive of ABG, said: “We are thrilled to bring this world-class brand into the fold. He disputed the notion that Simon Property was “buying into these retailers to pay us rent,” saying that the company believed in the brands and thought they could make money. He also noted that the venture was saving jobs at places like Brooks Brothers. The pandemic dealt a new and unexpected blow to Brooks Brothers, given its pricey, formal merchandise and reliance on physical retail. Our strategic partnership will allow us to leverage the tremendous equity of this quintessential American brand through key partnerships.”. The U.S. retailer had set a deadline last week to receive offers better than Authentic Brands and Simon Property's, but none came in, sources familiar with the matter had told Reuters. It was revived in the past two decades by the Italian industrialist Claudio Del Vecchio, who bought it in 2001. The $325 million offer for Brooks Brothers, up from a $305 million bid last month from the same suitors, is subject to court approval this week, the companies said in a statement late on Tuesday. On Zoom, sweatpants cannot be distinguished from tailored dress pants. Sign up for free newsletters and get more CNBC delivered to your inbox. On an earnings call this week, David Simon, the chief executive of Simon Property, outlined several benefits to the acquisitions of bankrupt retailers through SPARC, which he referred to as a 50-50 joint venture with A.B.G. Brooks Brothers comes at an important time in ABG’s development as we are placing a significant emphasis on growing our retail and ecommerce footprint. The 200-year old iconic apparel retailer filed for bankruptcy last month, joining a slew of decades-old American retailers that have succumbed to the COVID-19 pandemic. Abraham Lincoln was wearing a Brooks Brothers coat the night he was assassinated. “That’s what we should talk about,” he said on the call. The level of distress at Brooks Brothers came into sharper focus this year when the company prepared to close its three U.S. factories, in Massachusetts, New York and North Carolina, forgoing its “Made in America” calling card, and announcing plans to lay off nearly 700 employees. Got a confidential news tip? The offer for Brooks Brothers came from an entity known as the SPARC Group, a joint venture between Simon Property and Authentic Brands Group.
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