Affiliates of Authentic Brands Group, ABG-Regatta LLC and ABG Intermediate Holdings, have emerged as the ”stalking horse” bidder for The Rockport Company, agreeing to pay $40.4 million for the bankrupt firm’s intellectual property, $5 million for its Korean subsidiary and additional yet-to-be-determined amounts for inventory. Rockport filed for Chapter 11 bankruptcy protection for the second time in five years just less than a week ago. The closing cash purchase price would be determined in a sale order, with the transaction slated to close by July 28. With the acquisition, ABG would add to its vast portfolio of approximately 50 apparel, footwear and lifestyle brands, including at least seven labels with ties to footwear. Those include Reebok, Airwalk, Frye, Tretorn, Prince, Hunter, and Vision Streetwear.
The proposed ABG deal includes a break-up fee of $1.59 million should Rockport opt to sell its assets to another qualified bidder through the bankruptcy court process. Bids for the bankrupt parent of DresSports are due by 4 pm on July 10, with a subsequent auction scheduled for July 13 at 10 am. If there are no additional qualified bids beyond ABG’s, the bankruptcy court will not proceed with the asset auction. Any court sale hearing to approve the Rockport sale to ABG or another party will occur on or before July 20.
