Authentic, Brookfield & Simon JV Offers $81M for Forever 21

A consortium led by Authentic Brands Group and two of retailer Forever 21’s largest landlords, Brookfield Property Partners and Simon Property Group, have filed an offer to acquire the brand out of bankruptcy for $81 million.

Forever 21 had been in “substantial, round-the-clock negotiations” about the bid, the Los Angeles-based company said in documents filed last week. The agreement calls for a court hearing on the deal no later than Feb. 13 and court approval by Feb. 18.

According to Bloomberg’s coverage, the so-called “stalking horse” agreement sets a minimum price for the proposed auction. If no other bidders step forward, the consortium would be declared the winner on February 18. As part of the bid, the consortium deposited almost $13.5 million in connection with the sale, and any competing bids would have to deposit 10% of the cash purchase price up front, according to court filings.

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