Brooks Brothers has found its white knight in mall giant Simon Property Group and apparel licensing firm, Authentic Brands Group.
A venture between the two companies, known as Sparc Group, has agreed to buy the retailer for $325 million, the Wall Street Journal reports. Brooks Brothers will close 75 of its 200 stores as part of the deal.
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Sparc submitted a $305 million stalking horse bid last month. Brooks Brothers, which filed for Chapter 11 bankruptcy in early July, had until Aug. 5 to find a higher offer.
Brand management firm WHP Global was reportedly interested in making a bid before Sparc’s offer was finalized.
Sparc has previously acquired retailers such as Aéropostale, Forever 21 and Nautica. Separately, the partners also have a long track record of scooping up troubled chains.
Authentic Brands acquired Barneys last year, and Simon Property is said to be considering buying J.C. Penney.
[WSJ] — Erin Hudson