Destination Maternity store

Bankrupt retailer Destination Maternity has received a $50 million stalking horse bid from Marquee Brands, subject to a higher bid at bankruptcy auction.

Marquee Brands is backed by Neuberger Berman, an employee-owned investment manager.

Marquee Brands and a venture composed of Hilco Merchant Resources LLC and Gordon Brothers Retail Partners LLC entered into an asset purchase agreement, whereby they propose to purchase Destination Maternity’s e-commerce business, intellectual property, store-in-store operations and the right to designate the sale of certain inventory and related assets, according to a filing in U.S. Bankruptcy Court in Wilmington, Del.

The agreement provides for the buyer to sell or otherwise designate the disposition of inventory, fixtures and equipment and the designated assets through store closing sales at the 235 stores where closing sales are not already in process, and will oversee the wind down of Destination Maternity’s leased stores.

In the event Destination Maternity completes an alternative transaction, there is a break up fee equal to 3.5 percent of the purchase price of $1.75 million, and a provision for reimbursement of reasonable and documented fees and expenses not to exceed $750,000, according to the filing.

Greenhill & Co., the retailer’s investment bank, will continue to market the assets and solicit other offers for Destination Maternity, which filed Chapter 11 on Oct. 21. Rival bids are due Dec. 5 and an auction, if necessary, is planned for Dec. 9. A sale hearing is scheduled for Dec. 12 with a deal expected to close by yearend.

Officials at Neuberger Berman had no comment Saturday.

Marquee Brands, a brand acquisition, licensing and development company, acquired the Martha Stewart and Emeril Lagasse brands and all related intellectual property from Sequential Brands last April.

For more stories:

Destination Maternity Files for Ch. 11 Bankruptcy

 

 

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