After mulling more than 150 potential deals over its two-and-a-half years, Global Brands Acquisition Corp., the investment firm founded by Joel Horowitz, Lawrence Stroll and John Idol, is liquidating and returning its funds to shareholders, according to a filing with the Securities and Exchange Commission.
This story first appeared in the December 9, 2009 issue of WWD. Subscribe Today.
The New York-based venture, a special purpose acquisition company, raised $287.5 million in a public stock sale in December 2007 and used interest from a trust holding that capital to evaluate potential targets. Under Global Brands’ charter, the company had to close its doors and return remaining funds to shareholders if a deal wasn’t consummated by Sunday.
Last month, the firm laid out plans to transform into a real estate investment trust under an agreement with Gerrity International. Shareholders were set to vote on that arrangement at a special meeting Friday, but the parties terminated the deal and the meeting was canceled.
Horowitz, Stroll and Idol were personally liable for the company’s debts in the event of a liquidation, but the three are not expected to have any obligations, according to previous SEC filings. In 2007, the three executives bought $5 million in warrants that with the liquidation are now worthless.
A spokesman for Global Brands declined to comment.
In 2003, Stroll and Idol, along with Silas Chou, took over control of the Michael Kors business, where Idol is chief executive officer and Stroll is co-chairman.