Brooks Brothers has locked in a $80 million loan without interest after the iconic American retailer filed for bankruptcy, Hypebeast reported.
Garrett Fail, the merchant’s attorney, said to U.S. Bankruptcy Judge Christopher Sontchi, “I’m convinced the terms will be the best that can be achieved.” Sontchi will reportedly ink an order to let the firm borrow $60 million and come to a decision on the $20 million left at a later point in the weeks to come.
ABG-BB LLC, which is a Simon Property Group Inc. and Authentic Brands Group LLC collaboration, has supplied the loan and is vying against WHP Global that had presented $75 million in debtor-in-possession financing to the retail chain in the past.
The retailer is also seeking to have an auction supervised by the court soon its sale. “We have had active discussions with multiple bidders,” Fail said.
On July 8, Brooks Brothers announced its long-rumored bankruptcy. Its announcement had been speculated even prior to COVID-19. However, the company recently encountered the pandemic in addition to work-from-home measures. The Delaware filing lets the merchant stay open as it forms a plan to come out of Chapter 11.
The firm listed liabilities and assets of $500 million at a minimum each in court documents, and representative said by email that it had secured a $75 million bankruptcy loan per past reports.
In separate news, Sur La Table, the Washington state-based upscale kitchen merchant, filed for bankruptcy in a plan that could lead to its sale to Fortress Investment Group affiliates.
Sur La Table reported liabilities and assets of $500 million each in its bankruptcy petition. The planned sought to have Fortress be a stalking horse bidder, which means that a price floor will be set for a prospective auction.
The retailer was established in 1972, and Investcorp purchased the firm in 2011 for $146 million. It started to shutter retail locations and call off its cooking classes throughout the nation as COVID-19 quickly spread in the U.S.
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