BIDERMANN ASKS COURT TO OK BREAKUP FEE ON LAUREN LICENSE

NEW YORK--Bidermann Industries USA is seeking bankruptcy court approval for a $1 million breakup fee to Polo Ralph Lauren Enterprises LP if Bidermann sells its Ralph Lauren Womenswear license to another bidder.
As reported, Bidermann, in Chapter 11 proceedings, struck a deal to sell the Ralph Lauren Womenswear license back to Ralph Lauren for between $40 million and $45 million depending on inventory and other variables.
Bidermann is also asking the court to approve a bidding process requiring any other bidder for the Lauren license to top Ralph Lauren's bid by at least $1.2 million. Sales of Ralph Lauren Womenswear totaled $120 million in 1994, according to bankruptcy court documents.
The sale of the Lauren license was triggered when Lauren started arbitration proceedings charging Bidermann violated terms of the licensing deal.
Bankruptcy Court Judge Tina L. Brozman is expected to approve the two bidding procedures within a few days.
A hearing to approve the sale of the Lauren Womenswear license is scheduled for Sept. 20.

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