(Reuters) – Brooks Brothers said on Thursday it entered into a $ 305 million “purchase of horses” agreement with retailer Spark Group LLC, in a move that could make the apparel brand a concern and at least Can help in its operation in 125 stores.
A pedestrian passes through the Brooks Brothers shop in New York City, New York, US, after the July 23, 2020, outbreak of coronovirus disease (COVID-19) in Manhattan Borough. REUTER / Carlo Allegri
The 200-year-old iconic apparel retailer filed for bankruptcy earlier this month, joining a group of decades-old American retailers who succumbed to the COVID-19 epidemic.
Under the terms of the agreement, SPARC, which is partially owned by brand management company Authentic Brands Group, intends to buy the company’s entire global business operations as a concern, Brooks Brothers, in a statement, reut.rs / 2BrfQk7 said.
The “horse to horse” agreement would mean that any other bid coming in should be higher than the offer made by Spark.
The settlement is subject to court approval. A court hearing to approve the bid has been scheduled for August 3, while competing proposals are due on August 5.
Brooks Brothers said a hearing for the final sale of its property is scheduled to take place on August 11.
Owned by Italian billionaire Claudio del Vecchio, the privately held Brooks Brothers was the first to stitch button-down polo shirts in 1896 and claimed to have worn the clothes of 40 former American presidents, including John F. Kennedy and Barack Obama.
The retailer has about 500 stores worldwide, most of which are closed due to coronavirus-induced lockdowns.
The company was already struggling as Corporate America, including Wall Street, relaxed its dress code for employees to choose casual dressings over bespoke suits.
(This story is true in paragraph seven from 1986 to 1896).
Reporting by Bhargava Acharya in Bengaluru; Editing by Sherry Jacob-Phillips