In a development that marks apparel brand Brooks Brothers remaining a going concerns and help it maintain its operations, the company has entered into a “stalking horse” purchase agreement with retailer SPARC Group LLC for $305 million.
Earlier this month, the 200-year old iconic apparel retailer had filed for bankruptcy joining a slew of American companies that have succumbed to the Wuhan coronavirus pandemic.
According to the terms of the agreement, SPARC intends to buy the company’s entire global business operations as a going concern, said Brooks Brothers in a statement.
The “stalking horse” agreement would imply that any other bids that come in must be higher than the offer made by SPARC.
The agreement is subject to court approval.
A court hearing to approve the bid has been set for August 3; competing offers are due on August 5.
The hearing for the final sale of its assets is set scheduled for August 11, said Brooks Brothers.