The iconic American apparel group Brooks Brothers has selected Authentic Brands Group (ABG) and its partially owned retail unit SPARC as the winning bidders of a competitive sale process after they increased their offer to $325 million for the vast majority of the company’s global business operations as a going concern as well as its intellectual property portfolio.

Brooks Brothers had initially entered into a $305 million “stalking horse” purchase agreement with SPARC.

As part of the agreement, SPARC will continue operating at least 125 Brooks Brothers retail locations. The bidders also intend to preserve the 202-year old Brooks Brothers brand, which filed for bankruptcy with a Delaware court on July 8 due to the impact of the Covid-19 pandemic.

The proposed transaction is subject to court approval and the satisfaction of customary closing conditions, including regulatory approval. The hearing to approve the sale is scheduled for Aug.14. Provided closing conditions are satisfied, the transaction is expected to be completed by the end of August.

Brooks Brother is owned and managed by Claudio Del Vecchio, the son of Luxottica’s founder Leonardo del Vecchio. Claudio Del Vecchio bought Brooks Brothers in 2001 from the British retailer Marks & Spencer for $225 million. EssilorLuxottica, which is the result of the merger of Luxottica and Essilor, has held the eyewear license for the Brooks Brothers brand since 1992.