Mitchells, the Westport-based family-owned upscale clothier, is set to acquire San Francisco-based Wilkes Bashford Company as part of the high-end department store chain’s Chapter 11 bankruptcy filing.
Jack Mitchell: Confirms deal in works. Dave Matlow for WestportNow.com
“If we can work things out, if the process goes through okay, we’ll acquire their assets,” Jack Mitchell, CEO of Mitchells, told WestportNow today.
Founded in 1966, Wilkes Bashford operated its six-story flagship store in San Francisco’s Union Square. It also opened stores in Mill Valley, Palo Alto, and Carmel, Calif. but the Mill Valley store and the Carmel store were closed in the last two months.
Under the proposed agreement filed with the Bankruptcy Court, Mitchells would pay $4.6 million in cash, subject to inventory adjustments. However, the transaction is subject to a competitive bid process to allow for higher or otherwise better offers.
Wilkes Bashford is seeking approval of an expedited sale process, arguing that a sale needs to close by Nov. 30 in order to avoid impacting the holiday shopping season, according to court papers.
Therefore, Wilkes Bashford has requested that alternate bidders be required to submit their bids by Nov. 23 and that a hearing to consider the sale be held on Nov. 25.
A hearing to consider the proposed bid procedures and a proposed break-up fee for Mitchells is scheduled for Wednesday, according to the court.
News reports in San Francisco said the Mitchells intend to keep the remaining two Wilkes Bashford stores as they are.
Wilkes Bashford, the chain’s 76-year-old founder, will still be a part of the business and all gift cards and store credits will be honored, the reports said.
“During this period, it will be business as usual. Customers will continue to be served by our world class associates and we will continue to provide our customers with their favorite fashions,” Wilkes Bashford said in a statement.
Edwin William Mitchell founded Mitchells of Westport with his wife Norma in 1958 and saw it grow into a multimillion dollar regional retail powerhouse. He died in 2004.
The family added to its 25,000 square foot flagship store with the 1995 acquisition of Richards of Greenwich, a renowned 8,000-square foot luxury men’s retailer. Richards has since expanded to 27,000 square feet and added women’s wear.
In 2005, Mitchells acquired Marshs of Huntington, N.Y., a 15,000 square foot men’s store.
Dave Matlow contributed reporting for this story.
