The Group’s global brand management and European wholesale business is a separate legal entity from GBG USA and is not included in this application and continues to maintain its business, the company said in a media release.
In connection with the application, GBG USA has entered into an Asset Purchase Agreement (APA) with WH AQ Holdings LLC (as a purchaser) and Hilco Brands LLC (as a guarantor) (collectively Stalking Horse Bidder). Bidder acts as a bidder for stalking horses in a sales process overseen by GBG USA’s Aquatalia brand and business courts. Stalking Horse bids offer a purchase price of $ 17.3 million, and APA is subject to the highest or otherwise better offer among other terms.
These measures include the recent sale of the Group’s Korean spider business to Alpha Vista Investment Co, Ltd, the sale of Spyder USA inventory and related assets to Liberated-Spyder LLC, and the sale of Frye inventory and related assets to ABG Frye LLC. It follows.
“We have a court-supervised process to facilitate the sale, which is best for maximizing the value of all stakeholders and dealing with GBGUSA and the Group’s financial position in a fair and transparent manner. We have decided that it is a policy of conduct. GBG USA has an attractive brand and product, and a highly talented team, and we believe this process is the best opportunity for GBG USA employees and businesses. ” Said Rick Darling, Chief Executive Officer of Global Brands Group.
With the recent sale of Spyder and Frye’s inventory and related assets, GBG USA has provided cash collateral to meet its immediate liquidity needs. This also reduced the need for supplementary Debtor (DIP) financing for the Chapter 11 process. GBG USA has received an additional $ 16 million in DIP financing from Restore Capital, LLC to support the additional liquidity needs in the Chapter 11 proceedings.
Willkie Farr & Gallagher LLP is a legal advisor to GBG USA. Ankura Consulting Group is a restructuring advisor to GBG USA and Ducera Partners is a financial advisor to GBG USA.
Fiber2Fashion News Desk (KD)
GBG USA, an indirect wholly owned subsidiary of Global Brands Group Holding Limited, engaged in the wholesale and direct sales shoe and apparel business in North America, has filed for bankruptcy. The company is also selling assets such as Ely & Walker, Airband, MagnaReady, Yarrow, B New York and JUNIPER unltd.
Apparel & footwear company GBG USA filed for bankruptcy protection
Source link Apparel & footwear company GBG USA filed for bankruptcy protection