Marquee Brands’ successful bid for the IP of bankrupt Destination Maternity is only the latest last-minute rescue of a retailer in which a brand management firm has served as savior.

Other recent examples: Authentic Brands Group’s recent acquisition of Barneys, and the return of Toys ‘R Us to brick-and-mortar under the banner of new owner Tru Kids Brands.

Leveraging Legacy

A new model is clearly emerging for reviving defunct retailers, with brand management firms leading the charge: buy a bankrupt retailer at fire sale prices then leverage that brand’s legacy for a comeback. That might mean the reopening of stores on a smaller scale, salvaging the e-commerce business, making the brands available for licensing or any combination of the above.

In the case of Destination Maternity, Marquee plans to “continue to build on the brands’ legacy in a business model focused on e-commerce, select wholesale partnerships and strategic marketing relationships.”

Meanwhile, ABG plans to close most of the five remaining Barneys stores and license the name to Saks Fifth Avenue for branded in-store departments; while Toys ‘R Us’ revival has been rolling out all year culminating in a return to brick-and-mortar just this last month and a partnership with Target to power its new e-commerce site.

You have to spend money…

In many cases, these efforts are being backed by private equity:

• Neuberger Berman Group closed on a $462 million fund for Marquee three years ago
• BlackRock Inc. bought an $875 million stake in ABG
• Tru Kids Inc. is backed by Solus Alternative Asset Management

We’re clearly looking at the arrival of a new class of privately held brand management firms with the financial backing to compete with publicly traded companies like Iconix Brand Group and Sequential Brands Group for IP that’s become increasingly available with the wave of retail bankruptcies in the U.S.