NEW YORK — The London Fog brand is about to be sold through the bankruptcy court process.
Gordon Brothers, Hilco and Osgoode Capital are joining forces for an $18.1 million bid for the brand, according to bankruptcy court records in Reno, Nevada.
In early March, the London Fog Group filed a voluntary Chapter 11 bankruptcy court petition in Reno, seeking to restructure its businesses. In late March, Columbia Sportswear Co. bested Perry Ellis International Inc. and other bidders to buy Pacific Trail’s portfolio of outdoor brands for $20.4 million in cash in an auction following the bankruptcy of Pacific Trail’s parent company, London Fog Group.
The joint bid for London Fog by the three firms is subject to better bids in a bankruptcy court auction to be held in early August.
Richard Kestenbaum, a partner at investment banking firm Triangle Partners, said, “London Fog is a twice-bankrupt brand that no longer has any significant presence at retail. Since the time when London Fog was successful, the retail landscape has changed and there are very few retailers left. Ergo, it is not clear that there is a place at retail today for a brand such as London Fog.”
Market sources said there could be one or two additional bidders for the brand at the auction. The winner would have to invest in the brand to build it up, sources said.