Golden Gate Capital has presented the “highest and best offer” of $268 million in cash for Eddie Bauer Holdings Inc, the bankrupt retailer said on Monday.
The offer will be presented to a bankruptcy court for approval on Wednesday, Eddie Bauer said in a released statement. The transaction is expected to close in August.
“The Golden Gate offer will maintain the substantial majority of Eddie Bauer's stores and employees in a newly formed going concern company,” Eddie Bauer said.
The new owner would continue to honor gift cards, the company said. Stockholders are not expected to receive any of the funds.
The retailer had continued to serve customers as it sought to sell its assets. It had previously announced an agreement with CCMP Capital Advisors for $202 million in cash.
The sales process, under the 363 section of the U.S. bankruptcy code, had allowed any higher and better bidder to take control of the assets.
Eddie Bauer’s chief executive Neil Fiske said at the time of the CCMP agreement that the company had “a great brand and a bad balance sheet” but that the agreement would allow the business to emerge with much less debt.