Destination Maternity filed a motion to approve the selection of Marquee Brands as the stalking horse bidder in its ongoing marketing and sale process.
Marquee Brands’ bid is to purchase the Company’s ecommerce businesses, intellectual property, leased departments within department stores and baby specialty stores, strategic marketing partnerships and the right to designate certain inventory and related assets for sale by its partners, Gordon Brothers and Hilco Merchant Resources.
If Marquee Brands completes the acquisition, Destination Maternity will shut down its remaining 235 retail stores and sell the remaining inventory, fixtures and equipment with liquidators Hilco Merchant Resources and Gordon Brothers.
In October of 2019, Destination Maternity filed for Chapter 11 bankruptcy protection and announced plans to lay off 642 corporate employees and close 183 store locations. By November, the company was delisted from the U.S. Stock Exchange.
“We are pleased that Marquee Brands recognizes the value of our business and has made a competitive bid during our marketing and sale process,” says Lisa Gavales, a member of the board of directors and interim chief executive officer, Destination Maternity. “We are working to continue the sale process, including the auction, and look forward to an outcome that will maximize value for our stakeholders. Looking ahead, we remain focused on continuing to serve our loyal customers.”
The $50 million bid is subject to adjustment and represents a baseline bid. It is currently subject to higher offers in an open auction process. Destination Maternity expects the auction, scheduled to take place on December 9, 2019, to be competitive.
License Global has reached out to Marquee Brands for comment and will update this story when a response is received.