Brooks Brothers Gets Bankruptcy Loan With Zero Interest Rate
- Clothing retailer seeking approval of DIP loan in court
- Brooks got competing offers to fund bankruptcy, lawyer said
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Competition to buy retailer Brooks Brothers Group Inc. will allow the company to fund its reorganization in bankruptcy with an $80 million loan that carries a zero interest rate and no closing fees.
ABG-BB LLC, a partnership between Authentic Brands Group LLC and mall landlord Simon Property Group Inc., will provide the loan. The generous terms reflect competition between that group and WHP Global, a brand-buying company backed by distressed debt giant Oaktree Capital Management LP, Garrett Fail, the retailer’s lawyer, said during a court hearing Friday.