The Group’s global brand management and Europe wholesale businesses are separate legal entities from GBG USA, not included in this filing and continue to maintain ongoing operations, the company said in a media release.
In conjunction with the filing, GBG USA has entered into an asset purchase agreement (APA) with WH AQ Holdings LLC (as purchaser) and Hilco Brands LLC (as guarantor) (together, the Stalking Horse Bidder), pursuant to which the Stalking Horse Bidder will serve as the stalking horse bidder in a court-supervised sale process for GBG USA’s Aquatalia brand and business. The stalking horse bid provides a purchase price of $17.3 million and the APA is subject to higher or otherwise better offers, among other conditions.
These actions follow the recent sale of the Group’s South Korean Spyder business to Alpha Vista Investment Co, Ltd, the sale of Spyder USA’s inventory and related assets to Liberated-Spyder LLC, and the sale of Frye’s inventory and related assets to ABG Frye LLC.
“We determined that a Court-supervised process to facilitate a sale is the best course of action to maximize value for all stakeholders and address the financial position of GBG USA and the Group in a fair and transparent manner. GBG USA has compelling brands and products and a highly talented team, and we believe this process represents the best opportunity for GBG USA’s employees and business,” said Rick Darling, chief executive officer of Global Brands Group.
The recent sales of Spyder and Frye’s inventory and related assets provided GBG USA with cash collateral to meet its immediate liquidity needs. This has also reduced the need for supplemental debtor-in-possession (DIP) financing for the Chapter 11 process. GBG USA has further received $16 million in DIP financing from ReStore Capital, LLC to support its additional liquidity needs during the Chapter 11 cases.
Willkie Farr & Gallagher LLP is serving as GBG USA’s legal counsel. Ankura Consulting Group is serving as GBG USA’s restructuring advisor and Ducera Partners is serving as GBG USA’s financial advisor.
Fibre2Fashion News Desk (KD)
| On 21st Aug 2021
Egypt has allocated EGP 125.7 billion in public investments for the...
Hohenstein Institute America has developed a quantification method...
| On 20th Aug 2021
Cotton exports from Uzbekistan are expected to rise in the coming...
Blockchains will be in heavy use by early adopters by 2025
Extension of RoSCTL to boost textile exports
Delay in adopting water sustainability both financially & environmentally...
Akram Tariq Khan
E-commerce brand YourLibaas meaning "garment or attire" in Udru, was...
EptaInks is the screen-printing division of Eptanova, a company that...
Shambhu Nath Jha
Leading research and consulting firm Fact.MR recently launched a report on ...
The Lenzing Group is an international company headquartered in Austria...
Garware Technical Fibres Ltd
Garware Technical Fibres Ltd (formerly Garware-Wall Ropes Ltd) is a...
UK-based Directa Plus is one of the largest producers and suppliers...
Samatvam, a womenswear brand that blends age-old craftsmanship with modern ...
Label Seema Gujral
<b>Seema Gujral</b>'s designs for her eponymous label revolve around...
Vidur Adlakha & Riccardo Bennidini
With an active presence in US, Italy and India, clothing brand La Fuori...
Letter to Editor
Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.
Subscribe today and get the latest information on Textiles, Fashion, Apparel.