A Clothing Firm Expresses Interest In Bidding The Limited

by San Antonio Attorney

Sunrise Brands LLC has bid for the intellectual property and e-commerce business of The Limited, a bankrupt clothing chain, for an amount of $26.3 million.

The Limited, a specialty retailer, forced to close 250 of its bricks-and-mortar stores this year. Sycamore Partners served as its stalking horse bidder after filing for Chapter 11 bankruptcy.

The bid by Sunrise Brands undermines the value it sees in the clothing chain’s online and intellectual property. Bankruptcy details and other important information could not be disclosed as they are considered confidential.

The media has tried to reach out to The Limited and Sunrise Brands for further comment towards the issue but both parties couldn’t be reached. Sycamore Partners refused to comment on the auction.

Majority of the clothing retailers have experienced financial troubles due to increased competition and change of consumer’s demand. Prevalence of online stores and e-commerce giants directly caused this change.

Wet Seal follows the same course of how The Limited handled bankruptcy. Wet Seals intends to auction intellectual property this month after bankruptcy filing and store shutdown.

Michelle Stocker, vice president of Wet Seal, failed to find the sufficient partnership and funding needed to maintain operations, as reported by the Wall Street Journal. The closure of Wet Seal’s 171 stores was the final attempt to save the company. In 2015, Wet Seal closed almost two-thirds of its stores and laid off 3,700 employees. Stores that gained huge profit were spared from the closure.

Sycamore Partners has an extensive retail portfolio, which covers Belk, Footwear line Nine West and Coldwater Creek, an online women’s apparel shop. Coldwater Creek was acquired through a bankruptcy proceeding in 2014. Sycamore Partners also tried to bid for Aeropostale in a bankruptcy auction, but lost to Authentic Brands Group LLC.

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