A group calling itself the “proposed attorneys for the official committee of unsecured creditors” has filed an objection with U.S. Bankruptcy Court against the proposed stalking horse bid from Authentic Brands to acquire the troubled manufacturer, claiming the sale process has been manipulated to the point that it will result in an “artificially low sale price.”
In papers filed late Thursday by Leonard, Street and Deinard of Minneapolis and obtained by WWD, the committee alleges that HMX’s chief executive officer, Doug Williams, “engineered from the beginning to ensure a favorable result for Doug Williams, Salus Capital Partners, and the stalking horse bidder at the expense of the estate and the unsecured creditors in particular. Material terms of the proposed sale were not disclosed until a few days before the auction and in many instances they were never revealed at all. This, of course, served to chill interest in the sale and will chill bidding at the auction as well.”
The papers go on to say that “potential bidders complained repeatedly to the committee about their inability to get comfortable with the transaction because they could not get their hands on critical information. In addition, many of the sale terms that were disclosed were so confusing or ambiguous that theyserved to chill bidding even further. The Committee simply cannot, and willnot, support any sale conducted in such a skewed and unfair manner.”
The group also alleges that Salus, the debtors and Williams “refused to honor basic requests for information” from “an alternative financing source.”
According to sources, CIT is among the firms willing to finance an alternative bid to Authentic Brands’. The papers say that Williams “stands to have his highly lucrative employment contract assumed by the stalking horse bidder, and will gain control of the debtors’ assets without making any personal investment or incurring any personal liability in exchange. And Authentic Brands “will obtain extremely valuable intellectual property and licensing rights at a remarkably favorable price.”
As a result, the group is asking that the motion by Authentic Brands to acquire the company be denied.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion