Designs Inc. has been selected to buy most of the assets of the bankrupt Casual Male Corp.
Designs projects an annualized revenue increase of more than $500 million from the deal. Its winning bid of $170 million is expected to close after it is approved by the U.S. Bankruptcy Court for the Southern District of New York.
The bid allows it to purchase most of Casual Male's assets, including its men's big and tall apparel retail and direct marketing businesses as well as the assumption of certain liabilities. Casual Male filed for Chapter 11 bankruptcy protection last year. It has 476 stores in 44 states.
Financing will include new equity capital, senior subordinated notes and a senior secured revolving credit arrangement with the company's bank, Fleet Retail Finance.
Designs chairman Seymour Holtzman has invested about $5 million of his own capital regarding the bid while Designs management and board members have put up more than $700,000 for the acquisition.
Casual Male specialized in clothing for big and tall men.
