Edelman for Brooks Brothers Prior to COVID-19, we were already conducting an evaluation of various strategic options to position the Company for future success in a rapidly transforming retail environment, including a potential sale of the business. Our company, WHP Global, backed by funds managed by Oaktree Capital & BlackRock, is a bidder. WHP Global is interested in acquiring brands similar to those Authentic Brands Group has purchased. The Company will continue to examine reopening stores that have been temporarily closed due to COVID-19, and as local and state public health and government officials allow and as it is economical to do so. WHP Global is a New York-based firm that owns and develops global consumer brands. Company officials said they will use revenue from the remaining stores and $75 million from WHP Global to fund Brooks Brothers operations during bankruptcy. Authentic and the two mall operators already bought Forever 21 Inc., which went bankrupt in September. ... ABG and Simon, as well as WHP Global… Before filing for bankruptcy, Brooks Brothers had arranged a $75 million DIP loan from WHP Global, owner of the Joseph Abboud and Anne Klein brands. It has 500 worldwide in 45 countries, with 200 in North America. Brooks Brothers’ agreement with Sparc comes with a $9.1 million break-up fee and up to $1 million in expenses if the stalking horse doesn’t win the auction, according to court papers. The $80 million loan from a venture between Authentic and Simon beat out WHP Global Inc.’s $75 million offer, Brooks Brothers lawyers said Friday … Brooks Brothers will continue to operate its business in the ordinary course throughout the court and sale process. Brooks Brothers will use the court proceedings to try to find a new owner. Sparc Group LLC, which is backed by Barneys New York owner Authentic and mall landlord Simon, agreed to make a $305 million bid in a court-supervised auction for Brooks Brothers’ global business operations, according to a statement. WHP Global … "It's early innings in the Brooks Brothers bankruptcy sale process," WHP Chairman and … “Our long history is a testament to the strength of our brand and our mission since 1818: serving customers through innovation, fine quality, personal service, and exceptional value.”, Mr. Del Vecchio continued: “Our priority is to start this important chapter with a new owner that has appreciation for the Brooks Brothers legacy, a vision for its future, and aligns with our core values and culture. “For now, I want to ensure a long life for this company,” he said. Bankrupt Brooks Brothers Gets Rescue Takeover Bid. Brooks Brothers said on July 8 when it filed for bankruptcy that it plans to permanently shut 51 stores in the U.S. Over two centuries later, Brooks Brothers is proud to uphold the same traditions and values and to be the destination for ladies and gentlemen from every generation. WHP Global already owns the apparel brands Anne Klein and Joseph Abboud. The firm strategically invests in high-growth distribution channels, digital commerce platforms, and global expansion. Recently WHP … The Company’s restructuring counsel is Weil, Gotshal, & Manges LLP, its restructuring advisor is Ankura Consulting Group and its financial advisor is PJ Solomon L.P. Court filings and other documents related to the process are available at http://cases.primeclerk.com/brooksbrothers or by calling the Company’s claims agent, Prime Clerk, at 877-930-4317 (toll-free) or 347-899-4592 (international) or sending an email to brooksbrothersinfo@primeclerk.com. “For over 200 years, Brooks Brothers has remained resilient, navigating evolving fashion trends, fluctuating economic cycles, and even world wars,” said Claudio Del Vecchio, Chairman and Chief Executive Officer. WHP Global Chairman Yehuda Shmidman had commented on the selection of SPARC as the stalking horse: “It’s early innings in the Brooks Brothers bankruptcy sale process. WHP Global, which is backed by Oaktree Capital and already holds a $75 million debtor-in-possession loan from Brooks Brothers, is also preparing an … The group has committed to take on at least 125 of the clothing stores in its so-called stalking-horse bid, which sets a minimum price for the auction. To view the docket on Bloomberg Law, click here. “It’s early innings in the Brooks Brothers bankruptcy sale process,” and “we are big believers in the power of the Brooks Brothers brand, the global footprint and the management team,” said Yehuda Shmidman, chief executive officer of WHP. The bankrupt Brooks Brothers is reportedly on the verge of a sale to a venture created by Authentic Brands Group and Simon Property Group. Brooks Brothers said it has secured a $75 million debtor-in-possession loan from WHP Global, according to The Wall Street Journal. WHP pulled out of the race to buy Brooks Brothers on Monday, according to WSJ. A Brooks Brothers spokesperson did not reveal how many bids the company received. WHP Global, a rival to ABG, is also preparing a bid for Brooks Brothers, the company told CNBC. Del Vecchio told the WSJ that he was unsure what he would do after Brooks Brothers is sold. We strongly believe in the power of the Brooks Brothers brand, the global footprint and the leadership team. This includes honoring certain employee-related wages and benefits obligations, paying claims of certain critical vendors and suppliers, and ensuring the continuation of other operations in the ordinary course of business with as minimal interruption as possible. Simon didn’t immediately respond to messages left after regular business hours. For more information, please visit www.whp-global.com. The new loan will … The Company will commence a competitive auction where parties can submit qualified bids. The oldest apparel company in the U.S., Brooks Brothers filed for bankruptcy on July 8 with an eye to emerging under a new owner. Authentic specializes in reviving beaten-down brands, including Aéropostale and Nautica. Brooks Brothers asked U.S. Bankruptcy Judge Christopher Sontchi in Wilmington, Delaware, to approve rules for the bidding process and auction. Representatives for Brooks Brothers, Authentic and WHP Global, which owns the Joseph Abboud and Anne Klein brands, declined to comment. The deadline requested by Brooks Brothers for a sale is Aug. 11. The case is Brooks Brothers Group Inc., 20-11785, U.S. Bankruptcy Court for the District of Delaware. WHP Global, another brand-licensing firm, was also working on a bid but dropped out of the process after Brooks Brothers picked Sparc as the … This capital, together with cash flows from ongoing operations, will provide liquidity to support the Company through the sale process. Brooks Brothers joins a long list of notable retailers that have filed for Chapter 11 in the last few months, including J.C. Penney, J. Crew, and Neiman Marcus. Prior to the petition date, on account of the COVID-19 pandemic, the Company decided to close approximately 51 Brooks Brothers stores in the United States, and have closed, or are in the process of closing such stores. A group of Italian companies, including Giglio Group SpA, is also working on an offer, according to spokesman for Giglio in Milan. A higher bid could still emerge before an Aug. 5 deadline as other firms prepare competing offers. WHP Global is preparing a bid for the retailer’s assets, the firm confirmed in a statement to Bloomberg. Our company, WHP Global, backed by funds managed by Oaktree Capital & BlackRock, is a bidder. Bankrupt Brooks Brothers Gets Rescue Takeover Bid (Bloomberg) -- The race to purchase Brooks Brothers Group Inc. out of bankruptcy is on as brand manager WHP Global … Brand Revival. WHP Global, which owns the Joseph Abboud and Anne Klein brands, is preparing a bid for the retailer’s assets, the firm confirmed in a statement to Bloomberg. The next key date is the auction. The Company has also secured commitments for a debtor-in-possession (“DIP”) financing facility of $75 million from WHP Global, a leading brand management firm, subject to court approval. WHP Global is preparing a bid for the retailer’s assets, the firm confirmed in a statement to Bloomberg. brooksbrothers@edelman.com, http://cases.primeclerk.com/brooksbrothers. Media Contacts Brand-licensing company WHP Global Inc. has bowed out of the race for Brooks Brothers Inc., according to people familiar with the matter, leaving a … Established in 1818, Brooks Brothers was the first American brand to offer ready-to-wear clothing and has continued throughout history with iconic product introductions including: seersucker, madras, argyle, the non-iron shirt, and the original polo button-down collar. WHP Global, which also licenses brands, is planning to make its own bid. The firm strategically invests in high-growth distribution channels, … Brooks Brothers expects to complete the sale process in the next few months, pending court approval. By Soma Biswas . ABG rival WHP Global submitted a bid to pick up Brooks Brothers for $334 million in July, but Brooks Brothers considered Sparc’s a better offer, The Wall Street Journal reported. Authentic specializes in reviving beaten-down brands, including Aéropostale and Nautica. Brooks Brothers filed for bankruptcy on Wednesday, with a commitment for a debtor-in-possession financing facility of $75 million already secured from brand management firm WHP Global … “For over 200 years, Brooks Brothers has remained resilient, navigating evolving fashion trends, fluctuating economic cycles, and even world wars,” said Del Vecchio in the statement. Show full articles without "Continue Reading" button for {0} hours. Read more: Brooks Brothers goes bust with business clothes losing favor. Microsoft and partners may be compensated if you purchase something through recommended links in this article. WHP Global also reportedly worked on a bid to buy Brooks Brothers, but eventually dropped out. Please contact us … In May four suitors sent Brooks official indications of interest, Pitts said. Arielle Patrick Seeking protection to facilitate an efficient sale of the business is the best next step for the Company to achieve its goals, over any other alternative.”. NEW YORK--(BUSINESS WIRE)--Brooks Brothers, America’s oldest apparel company, today announced that it has commenced Chapter 11 cases in the United States Bankruptcy Court for the District of Delaware to facilitate a value-maximizing sale process. (Bloomberg) -- The race to purchase Brooks Brothers Group Inc. out of bankruptcy is on as brand manager WHP Global and a group of Italian companies prepare bids following Authentic Brands Group LLC and Simon Property Group Inc.’s $305 million offer. WHP Global is a New York-based firm that owns and develops global consumer brands. Bloomberg reported earlier that Authentic and Simon were positioning themselves to own the 200-year-old chain. Timing details for the process will be made available in the coming days. The next key date is … In fact, conversations between Sparc Group and Brooks Brothers were … Details on the store closures can be found in the Company’s first day motions, filed publicly with the court. Industry headwinds were only intensified by the pandemic. To support its operations in bankruptcy, Brooks Brothers has secured $75 million in debtor-in-possession financing from brand management firm … Since its founding 202 years ago in New York, Brooks Brothers has become a legendary international retailer with 200 stores in North America and 500 worldwide in 45 countries while maintaining a steadfast commitment to exceptional service, quality, style, and value. Locate and find Brooks Brothers Stores and Outlets using our Store Locator Having trouble using this site with a screen reader or any other Accessible technology? WHP Global owns the ANNE KLEIN and JOSEPH ABBOUD brands. Brooks Brothers is trying to attract as many suitors as possible to compete with the current stalking horse, or lead, bidder, the company said in a court filing Thursday. The duo has teamed up before, with a pending offer for Lucky Brand Dungarees, and they’ve held talks along with Brookfield Property Partners LP about buying bankrupt J.C. Penney Co. and Ann Taylor’s parent, Ascena Retail Group Inc. A transaction would ensure that the iconic Brooks Brothers brand is positioned to continue serving its loyal customers for years to come. (Updates with Italian bidders in first, sixth paragraphs. ), For more articles like this, please visit us at bloomberg.com, Like us on Facebook to see similar stories, GOP senators react to Trump acquittal on 'SNL', First known patient reinfected with South Africa coronavirus variant is in critical condition. Backed by funds managed by Oaktree Capital and BlackRock Inc., WHP was originally named the lender on Brooks Brothers’ bankruptcy loan before Authentic and Simon submitted a competing offer that ultimately won out. A hearing on the sale will be held Aug. 11. Sparc runs more than 2,600 retail stores, shop-in-shops and an e-commerce platform, the company said. Allison McLarty WHP Global Inc., which has agreed to finance Brooks Brothers during its bankruptcy, is also crafting a buyout offer, according to people familiar with the matter. “The goal of the Debtors’ continued postpetition sale process is now to leverage the Stalking Horse Agreement to have new or existing bidders submit offers for the Company’s assets,” Derek Pitts, managing director at PJ Solomon, said in the filing on behalf of Brooks.