Marc Miller, chief executive of SPARC, said: “Brooks Brothers’ new structure is another example of how ABG and SPARC are innovating the traditional brand model. The coronavirus outbreak has toppled several storied retail brands, especially those focused on apparel, as many stores were forced to temporarily close and demand for new clothing dropped in a remote, less social environment. Abraham Lincoln was wearing a Brooks Brothers coat the night he was assassinated. The buyers committed to continue operating at least 125 Brooks Brothers retail locations. 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. Our strategic partnership will allow us to leverage the tremendous equity of this quintessential American brand through key partnerships.”. We want to hear from you. Brooks Brothers filed for bankruptcy last month. He also noted that the venture was saving jobs at places like Brooks Brothers. 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. 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. The pandemic dealt a new and unexpected blow to Brooks Brothers, given its pricey, formal merchandise and reliance on physical retail. 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. 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. Most say they plan to re-emerge with fewer stores. Brooks Brothers said in court documents that since April 2019, its business had been marketed to more than 90 potential investors around the world. 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. 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. Before the pandemic, the company operated 424 retail and outlet stores globally, including 236 in the United States, according to court documents. 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. 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. 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. The mall owner and A.B.G. 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. Got a confidential news tip? 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 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. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Data is a real-time snapshot *Data is delayed at least 15 minutes. © 2020 CNBC LLC. 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. 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. 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. Authentic Brands Group has completed its acquisition of US business wear retailer Brooks Brothers. 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. “We’re doing our fair share for trying to keep this world as normal as we can.”. 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. A Division of NBCUniversal. 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. Proms, weddings, graduations, bar mitzvahs and other special occasions fell off calendars. 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. 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. It was revived in the past two decades by the Italian industrialist Claudio Del Vecchio, who bought it in 2001. 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. Brooks Brothers' restructuring counsel was Weil, Gotshal & Manges LLP, while PJ Solomon LP served as its investment banker and Ankura Consulting Group was the financial adviser. The offer for Brooks Brothers came from an entity known as the SPARC Group, a joint venture between Simon Property and Authentic Brands Group. SPARC has also bid on Lucky Brand, the denim company that filed for bankruptcy last month. “That’s what we should talk about,” he said on the call. Sign up for free newsletters and get more CNBC delivered to your inbox. Jamie Salter, founder, chairman and chief executive of ABG, said: “We are thrilled to bring this world-class brand into the fold. Meanwhile, ABG will oversee all licensing partnerships, new business and brand development, although it will share the retailer’s brand marketing responsibilities with SPARC. 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. A.B.G. Not only were its stores temporarily closed, but so were the offices of many of its customers. 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. 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. 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. 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.