Brooks Brothers Inc. reached a deal with Sparc Group LLC — the venture created by Authentic Brands Group LLC and mall owner Simon Property Group Inc. — to sell the company for $305 million, The Wall Street Journal reported. Sparc’s offer will be subject to higher and better bids due by Aug. 5 and has been designated as the “stalking horse.” The company has set a deadline of Aug. 11 to complete a sale to a buyer. Sparc has also committed to keeping 125 of the company’s stores open. WHP Global Inc. is also preparing a bid for Brooks Brothers. Both Sparc and WHP Global have been expected to come forward to bid for Brooks Brothers. The two firms competed with each other to provide a bankruptcy loan to the retailer, a competition which Sparc won, with a $80 million loan. A third suitor has emerged since the iconic American company filed for bankruptcy. Milan-based Giglio Group SpA, which helps fashion companies improve online sales, is spearheading a group of investors who are interested in buying the company and turning it into an online-only retailer. If successful, Giglio plans to install Italian managers with fashion-industry experience and close stores to free up funds to invest in digital. Brooks Brothers’ three U.S. factories, which are slated to close next month, would remain open and overseas production would be consolidated in Italy.
