image: The Limited

image: The Limited

Limited Stores LLC has filed for bankruptcy, the latest brick-and-mortar retailer to reorganize as shoppers shift to fast-fashion retailers and online competitors. Limited confirmed that it has agreed to a “stalking horse” bid for its intellectual property from an affiliate of private equity firm Sycamore Partners.

A “stalking horse” bid is a starting or minimum bid for an asset of a distressed company from a bidder chosen by the company. Such bids are aimed at preventing low bids for a distressed company’s assets.

Limited Stores, which filed for Chapter 11 protection in the Delaware bankruptcy court, said on Friday it would close all its about 250 brick-and-mortar stores, effective Sunday.