Destination Maternity announces proposed 'stalking horse' bidder
Destination Maternity filed on November 29, 2019 a motion to approve the selection of Marquee Brands, 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 $50M, 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, to be competitive. The deadline to submit qualified bids is December 5, and the company expects to seek Court approval of the winning bid on December 12.