Authentic Brands Group and Sparc Group will acquire US apparel retailer Brooks Brothers as the two companies have increased their bid offer from $305 million to $325 million. Sparc, a venture backed by brand manager Authentic Brands Group and mall operator Simon Property Group will continue operating at least 125 Brooks Brothers retail locations as part of the deal.
The 200-year old apparel retailer, Brooks Brothers filed for bankruptcy last month, joining a slew of decades-old American retailers that have succumbed to the COVID-19 pandemic.
The retailer 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. The retailer had set a deadline last week to receive offers better than Authentic Brands and Simon Property’s, but none came in.