The battle for Brooks Brothers is heating up.
The venerable retailer is expected to file Chapter 11 bankruptcy within days and is analyzing potential stalking-horse bids before it takes the plunge, according to sources.
Bids for Brooks Brothers are being submitted this week, according to sources, and the price is expected to be around $350 million.With its war chest of cash and its partnership with mall developers, ABG is seen as the company to beat. If its bid is accepted, ABG is expected to mimic the strategy it used to purchase Forever 21 for $81.1 million in February — in that deal, ABG and Simon each took a 37.
Although much smaller, WHP has proven itself to be a player in the brand management space. It too has easy access to cash. Oaktree Capital Management LP recently increased its investment in the firm to $350 million, bringing the total funds available for dealmaking to more than $1 billion. WHP was formed last July and so far has purchased the Anne Klein and Joseph Abboud trademarks.
Brooks Brothers, which celebrated its 200th anniversary in 2018, was purchased by Italian businessman Claudio Del Vecchio for $225 million in 2001. Although he spearheaded a significant improvement in the quality of the merchandise, increased its percentage of sportswear and expanded outside the U.S., the company’s sales have been holding steady at around $1 billion for the past several years.
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