Brand-licensing company WHP Global Inc. has bowed out of the race for Brooks Brothers Inc., according to people familiar with the matter, leaving a venture backed by apparel-licensing firm Authentic Brands Group LLC and mall owner Simon Property Group Inc. poised to take control of the bankrupt retailer, the Wall Street Journal reported. Like Authentic Brands, WHP Global buys consumer brands, often out of bankruptcy, and revives them by shedding unprofitable locations. Sparc Group LLC, the Authentic Brands-Simon venture, had bid $305 million for Brooks Brothers last month. That “stalking horse” offer includes a commitment to keep 125 Brooks Brothers stores open. The retailer has roughly 200 stores in North America. The Sparc offer had been subject to better bids, but the deadline for rival offers passed last week. WHP and Sparc had been vying to buy Brooks Brothers since before the retailer filed for bankruptcy. WHP had submitted a bid for $334 million for Brooks Brothers in July, but the retailer deemed Sparc’s offer a better deal. The firms also competed to provide Brooks Brothers a loan to finance its bankruptcy proceedings, a battle won by Sparc. Given that, WHP decided not to move forward with its offer.
