Destination Maternity Corporation, a national retailer for maternity apparel and accessories, filed on November 29, 2019 a motion to approve the selection of Marquee Brands, LLC as the stalking horse bidder in its ongoing marketing and sale process. Marquee Brand’s bid is to purchase the Company’s ecommerce 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, subject to adjustment, along with the assumption of certain liabilities, represents a baseline bid and is subject to higher or otherwise better offers in an open auction process. The proposed Purchase Agreement contains customary closing conditions. To the extent additional qualified bids are received, Destination Maternity expects the auction, scheduled to take place on December 9, 2019, to be competitive.
The deadline to submit qualified bids is December 5, 2019, and the Company expects to seek Court approval of the winning bid on December 12, 2019.
“We are pleased that Marquee Brands recognizes the value of our business and has made a competitive bid during our marketing and sale process,” said 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 its 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 (“BRG”) is serving as Destination Maternity’s restructuring advisor.