Sycamore Partners Wins Bankruptcy Auction for The Limited
Sycamore Partners has won the auction for the e-commerce business and intellectual property of bankrupt retailer The Limited with a bid of $26.8 million. Sources close to the situation said Sycamore Partners outbid clothing firm Sunrise Brands LLC. The sale isn’t final yet — it must be approved by a U.S. bankruptcy court judge first. Earlier this year, The Limited closed all of its 250 brick-and-mortar stores and then filed for bankruptcy last month.
Total Retail’s Take: Like other brick-and-mortar retailers, The Limited struggled with changing consumer buying habits. Although the sale is still subject to approval from the U.S. Bankruptcy Court for the District of Delaware, Sycamore Partners has a history of making these kinds of acquisitions. Sycamore Partners’ retail portfolio includes department store chain Belk, footwear and accessories line Nine West, and online-only women's apparel company Coldwater Creek, whose intellectual property it acquired through bankruptcy proceedings in 2014. It will be interesting to see how the buyout firm will attempt to bring The Limited's business back to life.