Destination Maternity Corp. filed a motion to approve New York City brand acquisition company Marquee Brands LLC as the stalking horse bidder in its ongoing marketing and sale process.
Marquee Brands submitted a $50 million bid to buy the company’s e-commerce 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 deadline to submit qualified bids is Dec. 5. If other qualified bids are received, an auction will take place on Dec. 9 with Marquee Brands’ bid as the baseline. Destination Maternity expects to seek court approval of the bid on Dec. 12.
“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 of the interim Office of the CEO in a statement. “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.”
If its bid is approved, Marquee Brands will close all 235 remaining Destination Maternity stores, according to court documents.
A representative for Destination Maternity told NJBIZ that the company is not commenting beyond the press release that was issued Monday morning. Marquee Brands has not returned a request for comment.