Brooks Brothers changes DIP agents, gets interim access to $60 million

By Caroline Salls

Pittsburgh, July 13 – Brooks Brothers Group Inc. obtained court approval to access $60 million of a proposed $80 million in debtor-in-possession financing from Authentic Brands Group affiliate ABG-BB, LLC on an interim basis, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for Aug. 3.

As previously reported, Brooks Brothers originally sought court approval of a commitment under which WHP Global agreed to provide $75 million in DIP financing. However, on Friday the company filed a revised proposed DIP agreement with ABG, which it said remained subject to continuing negotiations and review by the Brooks Brothers debtors and other interested parties.

The DIP credit agreement reached with ABG indicates that no interest will accrue on the facility, opposed to 11% under the previous agreement with WHP Global.

The maturity date remains unchanged at six months from the company’s bankruptcy filing date.

Brooks Brothers is an apparel retailer based in New York City. The company filed bankruptcy on July 8 under Chapter 11 case number 20-11785.

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