Brooks Brothers has announced that it is to be acquired by Authentic Brands Group and Sparc Group after they increased their offer from 305 million dollars to 325 million dollars.
The two companies will take control of the vast majority of the menswear brand’s global business operations as a going concern as well as its intellectual property portfolio. As part of the deal, Sparc has committed to continue to operate at least 125 Brooks Brothers stores.
Brooks Brothers finds buyer
Brooks Brothers filed for bankruptcy last month. The upmarket retailer is owned by founder Claudio Del Vecchio, who bought the company from Marks & Spencer in 2001.
“Industry headwinds were only intensified by the pandemic,” Vecchio told the BBC in July. “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.”
Formalwear brands have been hit particularly hard in recent months by the cancellation of events due to Covid-19 and by the growing pivot from consumers towards more casual workwear.
In July, it was revealed that British menswear retailer TM Lewin would permanently close all 66 of its stores after falling into administration.
Brooks Brothers said a hearing to approve the sale is scheduled for 14 August.
Photo credit: Brooks Brothers