Majors

Brooks Brothers Finds Buyer, Accepts $325M Bid

MajorsAug 17, 2020

Brooks Brothers Finds Buyer, Accepts $325M Bid

The retailer, which owns jewelry brands Alexis Bittar and Carolee, may be acquired by mall owner Simon and licensing company Authentic Brands.

A costume jewelry necklace with freshwater pearls from Carolee’s fall 2018 collection. Jewelry brands Carolee and Alexis Bittar are owned by Brooks Brothers, which has found a buyer amid its bankruptcy proceedings.

New York—Brooks Brothers has found a buyer after filing for Chapter 11 bankruptcy protection in July.

After fielding bids during a competitive sales process, the retailer chose licensing company Authentic Brands Group and SPARC Group LLC, a partnership between Authentic Brands and mall owner Simon Property Group.

The winning bid was for $325 million for both the company’s operations and its intellectual property portfolio.

The initial bid was for $305 million, but the price was raised as competition heated up.

The retailer had begun looking for a buyer or merger opportunity in 2019, but the COVID-19 pandemic threw a wrench in its plans, leading to a bankruptcy filing.

SPARC has agreed to keep at least 125 Brooks Brothers retail locations in business in an effort to preserve the brand.

The company operates 424 retail and outlet stores, including 236 in the U.S., as per court documents.

Founded in 1818 as H. & D.H. Brooks & Co. in New York, Brooks Brothers is the oldest apparel company in the United States, the company said in its bankruptcy filing.

The retailer’s jewelry subsidiary Deconic Group LLC, which manufactures, merchandises, markets, sells and licenses the Alexis Bittar and Carolee fashion jewelry brands, also filed for bankruptcy.

Brooks Brothers acquired Carolee LLC in 2001 and, under Carolee, Alexis Bittar in 2016. It overhauled its fashion jewelry business in 2017, relaunching as Deconic.

The deal is subject to court approval, but is expected to close by the end of August.

The bidders have a long history of scooping up troubled companies. 

The duo also recently placed the winning bid for denim company Lucky Brand for $140.1 million.

Authentic Brands bought Barneys New York last year and partnered with mall owners Simon and Brookfield Property Partners to buy Forever 21 earlier this year.

Lenore Fedowis the associate editor, news at National Jeweler, covering the retail beat and the business side of jewelry.
tags:

The Latest

CrimeMay 18, 2021
Police Searching for 2 Suspects in Armed Robbery of GA Jewelry Store

A third suspect, who was shot during the robbery, has been arrested and charged.

CollectionsMay 18, 2021
New York Isn’t Over, According to the Yurmans

David Yurman’s latest collection is a tribute to a New York City landmark.

Events & AwardsMay 18, 2021
Registration Is Open for JA National Convention

The third annual Jewelers of America National Convention will be held virtually July 19-20.

Brought to you by
How to Engage and Sell to Millennials

Millennials were once feared in the diamond industry, but now this younger generation has become today’s largest diamond buying demographic.

ColumnistsMay 18, 2021
Creative Connecting: Why Jewelers Should Be More Active on YouTube

A strong following on YouTube can boost online visibility and trust in your store’s staff, Duvall O’Steen and Jen Cullen Williams write.

Weekly QuizMay 14, 2021
This Week's Quiz
Test your knowledge of jewelry news from the week of May 10-14, 2021.
Take the Quiz
IndependentsMay 17, 2021
Take a Peek Inside the New Zadok Jewelers Store

The Houston jeweler recently opened a 28,000-square-foot, two-level store.

IndependentsMay 17, 2021
Bill Boyajian Has a New Book Coming Out

“Family Business Succession Planning” covers the dynamics of working in a multigenerational business and prepping for the next generation.

Brought to you by
A New Golden Age

Gold has had its share of ups and downs over the last 5 decades. Here’s why the metal is having another big comeback.

TechnologyMay 17, 2021
JCK Launches Online B2B Jewelry Marketplace

“Jewelers Source by JCK” will help qualified buyers find new clients and conduct virtual meetings all year round.

×