Maternity apparel retailer Destination Maternity Corp. has canceled its scheduled bankruptcy auction and declared brand acquisition company Marquee Brands LLC's $50 million bid as the winner, according to court documents.
Marquee Brands was selected as the stalking horse bidder Nov. 29. Its offer includes the acquisition of Destination Maternity's e-commerce business, intellectual property, leased units within department stores and baby specialty stores, and strategic marketing partnerships.
The bid also allows Marquee Brands to let its partners Hilco Merchant Resources LLC and Gordon Brothers Retail Partners LLC sell certain inventory and designated assets through store-closing sales at 235 Destination Maternity locations where liquidation sales are not already underway.
Marquee Brands said Dec. 10 that the deal will diversify its women's fashion division and add scale to its directly managed e-commerce platform. It plans to transform the bankrupt retailer's business model to better compete in the digital age.
The sale is subject to approval by the U.S. Bankruptcy Court for the District of Delaware at a Dec. 12 hearing, as well as customary closing conditions stated in the asset purchase agreement. The deal is expected to close by Dec. 20.
Destination Maternity filed for Chapter 11 bankruptcy Oct. 21, with a plan to close 213 underperforming stores.