Oaktree Capital Vying for Hilfiger

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Los Angeles-based private equity firm Oaktree Capital Management has bid for Tommy Hilfiger Corp., one of five separate takeover offers made for the struggling company in recent weeks, Reuters reported on Wednesday.


Oaktree Capital and New York-based private equity firm Apax Partners were among those that submitted bids last week, Reuters said, citing undisclosed sources. Details of all five offers were not available.


Wal-Mart Stores Inc. was rumored to be looking at Hilfiger, but decided not to follow through with an offer, Women’s Wear Daily reported on Nov. 2.


The winner of the auction is likely to be announced in early December.


The company, which designs and sells Tommy Hilfiger and Karl Lagerfeld brand clothing, has struggled for months with shrinking revenues and weakness in its U.S. wholesale business. Hilfiger hired J.P. Morgan to explore options, including putting itself on the auction block, Reuters said.


In August, Tommy Hilfiger said it would pay more than $18 million in additional taxes and interest to settle a federal probe into whether payments among its subsidiaries artificially lowered the company’s tax rate. The settlement put the issue behind the company and allowed it to focus on exploring a sale.

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