Investment firm Saadia Group LLC won a bankruptcy auction for Lord & Taylor LLC’s assets with a cash bid of $12 million, topping a $3.75 million starting bid to broaden its portfolio of distressed fashion businesses.
The sale includes the bankrupt department store’s inventory, intellectual property, social media accounts, customer data, and e-commerce platform, according to a notice filed with the U.S. Bankruptcy Court for the Eastern District of Virginia Oct. 16.
If approved by the court, the deal would mark the New York company’s second acquisition of distressed fashion assets in the last two months. In September, Saadia also won a bankruptcy auction for the e-commerce business of RTW Retailwinds Inc., the bankrupt parent of New York & Co.
The bid topped stalking horse bidder Zar Apparel Group. Zar will get a 3% break-up fee.
Capital One N.A. and Capital One Bank objected to the sale of customer data, claiming they own some of it exclusively through a credit card program.
Branded Online Inc., a Costa Mesa, Calif. company that helps companies manage their e-commerce systems, was selected as the back-up bidder if the Saadia deal doesn’t close.
A virtual hearing on the sale will be held Tuesday before Judge Keith L. Phillips.
Lord & Taylor and its owner, San Francisco-based fashion company Le Tote Inc., filed for bankruptcy in August after pandemic-related shutdowns stymied efforts to reinvigorate the department store.
The case is In re Le Tote, Inc., Bankr. D. Del., No. 20-33332, notice 10/16/20.
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