Brooks Brothers Group has received a loan to help it reorganise through bankruptcy.
Authentic Brands Group LLC and Simon Property Group Inc. won a competition to supply financing to the retailer, offering an $80M debtor-in-possession loan that has a zero interest rate and no closing fees, reported Bloomberg. The loan will be provided by ABG-BB LLC, a partnership between the companies.
The terms of the loan reflect the heated competition between ABG-BB and WHP Global, a brand-buying company backed by distressed debt giant Oaktree Capital Management LP, according to the report.
Founded in 1818, Brooks Brothers has more than 250 stores in the US 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 that has appreciation for the Brooks Brothers legacy, a vision for its future, and aligns with our core values and culture,” Owner Claudio Del Vecchio stated when the company announced it was filing for bankruptcy.
