Department Store Owner Buys Bugle Boy Assets

The owner of a Midwestern department store chain has purchased the wholesale operations of Bugle Boy Industries Inc. for $68.6 million, beating out two rival bidders in a court-approved liquidation of the troubled Simi Valley sportswear manufacturer.

A bankruptcy judge approved the sale to Columbus, Ohio-based Schottenstein Stores Corp. on Wednesday, said Kenneth C. Henry, the chief executive overseeing Bugle Boy’s liquidation.

Two Florida-based clothing companies--Perry Ellis International Inc. and Tropical Sportswear International Corp.--also had competed to purchase Bugle Boy’s wholesale and licensing operations. But Henry said Schottenstein prevailed after 22 rounds of bidding that pushed the final purchase price above the $54 million that Perry Ellis had initially offered last month.

Henry said Schottenstein will acquire Bugle Boy’s trademarks, inventory and accounts receivable as well as rights to license the brand.

Schottenstein holds an interest in a variety of retail businesses, including a minority stake in casual clothing retailer American Eagle Outfitters Inc., and majority ownership of the Value City Department Store chain, an off-price retailer with about 120 stores in 15 states in the Midwest, Mid-South and mid-Atlantic.

Schottenstein officials could not be reached for comment.

Henry said the sale of Bugle Boy’s wholesale operations, along with proceeds from the liquidation of its 200-plus retail stores and outlets, should yield more than $100 million to pay off creditors.

Once one of the hottest names in youth fashion, Bugle Boy filed for Chapter 11 bankruptcy protection last month, weighed down by more than $100 million in debt.