Will This Work?
Will This Work???
It seems to me the odds are against this. With more and more people working from home, a much more casual life style and consumers spending less and less on high end clothing I can't imagine this is going to have a happy ending!
Brooks Brothers finds a buyer
Sources tell FOX Business’ Charlie Gasparino that sweetened offers by SPARC Group for Brooks Brothers forced others to drop out of bidding but at least one bidder that dropped out may propose a last-minute offer.
As the retail industry contends with a trend of bankruptcies and store closures exacerbated by the coronavirus pandemic, two investors are taking an optimistic view of the embattled sector’s long-term outlook.
Authentic Brands Group CEO Jamie Salter and Simon Property Group CEO David Simon have teamed up to buy several iconic retail brands. Recent acquisitions include Brooks Brothers, purchased out of bankruptcy for $325 million in a deal that closed last week, and Forever 21, another bankrupt chain, in February.
BROOKS BROTHERS POISED TO BE ACQUIRED BY AUTHENTIC BRANDS-SIMON VENTURE
The coronavirus pandemic forced the mass closure of physical retail operations for several weeks and worsened the “retail apocalypse,” a term coined to describe the rise of ecommerce operations such as Amazon at the expense of brick-and-mortar retail. Salter, whose company has made a habit of purchasing venerated brands in recent years, told the New York Times that he is confident in the industry’s future.
“Look, if the world ends, which I don’t think it’s going to, then there’s no doubt about it, I’m not so smart,” Salter told the newspaper. “But I don’t believe the world’s going to end.”
Salter’s Authentic Brands Group manages a retail portfolio with estimated annual revenues of $15 billion, with plans to reach $20 billion through further acquisitions. The company’s holdings include Sports Illustrated, Barneys New York and Lucky Brand Dungarees. Simon’s company, Simon Property Group, is the largest mall operator in the United States.
The deals are closed through a joint venture called Simon Properties Authentic Retail Concepts, according to the Times. Salter’s company gains favorable rent rates for its newly acquired brands, while Simon Property maintains tenants in its malls. The firms control roughly 1,500 physical stores across their brand portfolio.
ROBINHOOD TO STOP SHARING APP'S POPULAR STOCKS
Rent costs crippled several retailers that saw business grind to a halt during the pandemic. Some companies declared bankruptcy amid mounting costs, while others sought to renegotiate the terms of their leases.
Salter has faced scrutiny over his business practices. Critics have accused Authentic Brands of exploiting the brand names of venerable companies for profit following their collapse. The company utilizes a licensing model, selling the right to use the brand names on new products or international ventures.
CLICK HERE TO READ MORE ON FOX BUSINESS
“It’s not a long-term quality play,” one retail told the New York Times regarding the duo’s acquisition of Brooks Brothers. “It’s not about a love of the brand or the goods. It’s predatory and opportunistic."
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Sponsored Stories You May Like
Ads by Verizon Media
This Might Be Taylor's Best Look Yet
Legend Who Bought Apple at $1.42 Says Buy This Now
Sponsored | Empire Financial Research
This Is What A $500K Home Looks Like
'Days Of Our Lives' Stars: Then And Now
Sponsored Stories
More from Fox Business
The Man Who Bought Amazon at $48 Says Buy TaaS Now
Sponsored | Empire Financial Research
Pandemic e-commerce surge spurs race for 'Tesla-like' electric delivery vans
Earn 65,000 points for a someday getaway.
Sponsored | Southwest Airlines
Chinese police deny use of force, detention of US reporter
Sponsored | NJM Insurance Group
Photos Of Barbra Streisand's Penthouse
How coronavirus pandemic has led to real estate boom as wider economy struggles
Town In Pennsylvania May Be The Wealthiest In The US
These are the NFL Coach of the Year favorites, oddsmakers say
Pennsylvania Mortgage Rates Fall Off a Cliff
Virgin Australia to cull a third of its Boeing 737 fleet under Bain ownership
Ads by Verizon Media
Market Futures
DOW JONES FUTURES
(I:DJI)
27,619.00
+94.00 (+0.34%)
NASDAQ FUTURES
(I:COMPX)
11,232.00
+171.50 (+1.53%)
S&P 500 FUTURES
(INX)