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Retailers Aeropostale Inc and Pacific Sunwear of California Inc
filed for bankruptcy last year.
Limited Stores said it also agreed to a "stalking horse" bid for
its intellectual property and some related assets from an
affiliate of private equity firm Sycamore Partners.
A "stalking horse" bid is a starting or minimum bid for an asset
of a distressed company from a bidder chosen by the company.
Such bids are aimed at preventing low bids for a distressed
company's assets.
Limited Stores, which filed for Chapter 11 protection in the
Delaware bankruptcy court, said on Friday it would close all its
about 250 brick-and-mortar stores, effective Sunday.
Sun Capital Partners Inc, the private equity owner of Limited
Stores LLC, disclosed on Friday in a letter to investors that
Limited Stores is evaluating strategic alternatives for its
remaining e-commerce business and intellectual property.
Sun Capital, which acquired a majority stake in Limited Stores
in 2007 and bought the rest in 2010, also disclosed it had
nearly doubled its investment in the company.
The reorganization plan and the asset sales are subject to
approval from the bankruptcy court, Limited Stores LLC said.
Klehr Harrison Harvey Branzburg LLP is The Limited's legal
adviser, while RAS Management Advisors LLC is its restructuring
adviser. Guggenheim Securities LLC is the investment banker for
the restructuring.
(Reporting by Arathy S Nair in Bengaluru; Editing by Saumyadeb
Chakrabarty and Sriraj Kalluvila)
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