Marquee Brands Emerges as Destination Maternity’s ‘Stalking Horse’ Bidder
An auction for the assets of Destination Maternity is scheduled to take place on Dec. 9, 2019. The deadline to submit qualified bids is Dec. 5, 2019, and the company expects to seek court approval of the winning bid on Dec. 12.
MOORESTOWN, NJ—Locally-based retailer Destination Maternity, which filed for bankruptcy protection in October, has filed an application to approve Marquee Brands, LLC as the stalking horse bidder in the retailer’s ongoing marketing and sale process.
Marquee Brands’ bid of approximately $50 million involves the purchase the Destination Maternity’s e-commerce 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.
The bid of approximately $50 million also involves the assumption of certain liabilities and represents a baseline bid. The application for approval of Marquee Brands as the stalking horse bidder was filed with the bankruptcy court on Nov. 29.
An auction for the assets of Destination Maternity is scheduled to take place on Dec. 9, 2019. The deadline to submit qualified bids is Dec. 5, and the company expects to seek court approval of the winning bid on Dec. 12.
Marquee Brands, which has offices in New York and Los Angeles, is a leading global brand owner and marketer. Owned by investor funds managed by Neuberger Berman, a leading employee-owned investment management firm. The company’s brands include: Martha Stewart, BCBGEneration, BCBGMAXAZRIA, Ben Sherman, Body Glove, Bruno Magli, Dakine and Emeril Lagasse.
“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 Destination Maternity’s Board of Directors and the interim Office of the CEO. “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.”
Throughout the process, Destination Maternity expects its operations to continue to serve customers and to meet the day-to-day obligations to its employees, suppliers of goods and services and customers.
Kirkland & Ellis LLP and Landis Rath & Cobb LLP are acting as the company’s legal co-counsel, Greenhill & Co., LLC is acting as investment banker and Berkeley Research Group, LLC is serving as Destination Maternity’s restructuring advisor.