Brooks Brothers Gets Bankruptcy Loan – Interest Free
Brooks Brothers Group obtained a loan to help it reorganize in the event of bankruptcy.
Authentic Brands Group LLC and Simon Property Group Inc. won competition to provide retailer financing, offering $ 80 million investment debtor-in-possession loan which has a zero interest rate and no closing costs, declared Bloomberg. The $ 80 million loan will be provided by ABG-BB LLC, a partnership between the companies.
The terms of the loan reflect fierce competition between ABG-BB and WHP Global, a brand buying company backed by troubled debt giant Oaktree Capital Management LP, according to the report. Both are said to be interested in acquiring the retailer. (WHP owns the Joseph Abboud and Ann Klein brands.)
At a hearing, the bankruptcy judge said he would sign an order allowing Brooks Brothers to borrow $ 60 million initially. The company will return to court in the coming weeks for permission to withdraw the remainder of the money that will be used to find trades while Brooks Brothers tries to find a buyer, Bloomberg reported.
Brooks Brothers said it was encouraged by the continued interest in its assets from potential buyers. Its pre-bankruptcy marketing efforts have attracted interest from bidders and discussions with those parties continued this week, debtors attorney Garrett A. Fail of Well Gotshal & Manges LLP told the court.
Founded in 1818, Brooks Brothers has more than 250 stores in the United States and Canada, with a total footprint that includes more than 500 stores in more than 70 countries.
“Our priority is to start this important chapter with a new owner who values the legacy of Brooks Brothers, a vision for its future and aligns with our core values and culture,” said owner Claudio Del Vecchio when the company announced that she was bankruptcy.