Destination Maternity has canceled its bankruptcy auction, as Marquee Brands’ bid won the auction. The Moorestown-based company filed for Chapter 11 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.
Marquee will get the retailer’s name, website and more for $50 million. Marquee’s plans for the brand include the closing of brick-and-mortar stores and selling exclusively online, with the possibility of selling in department stores.
“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, member, 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.”
With the acquisition, Destination Maternity is set to shut down its remaining 235 retail stores and sell the remaining inventory, fixtures and equipment with liquidators Hilco Merchant Resources and Gordon Brothers.