Sunrise Brands Bids for The Limited
Clothing firm Sunrise Brands LLC has bid for the e-commerce business and intellectual property of bankrupt U.S. retailer The Limited, challenging a $26.3 million offer from private equity firm Sycamore Partners. The Limited was forced to close its 250 brick-and-mortar stores earlier this year and filed for bankruptcy last month, with Sycamore Partners as the initial bidder. The bankruptcy auction for The Limited is scheduled for Feb. 21 in Philadelphia. While the value of Sunrise Brands’ offer isn't known, Sycamore’s bid was $26.5 million to start. Sunrise Brands’ holdings include Seven7 Jeans, American Rag and branded apparel for actresses Melissa McCarthy and Eva Longoria.The retail portfolio of Sycamore includes department store chain Belk, footwear and accessories line Nine West, and online-only women's apparel company Coldwater Creek.
Total Retail’s Take: Sunrise Brands’ bid underscores the value it sees in The Limited's online presence and intellectual property. Yes, mall-based retailers such as The Limited have experienced fierce competitive pressure as shoppers turn to e-commerce giants such as Amazon.com, but the bid could mean good news for the company’s online division.