In a buy-your-business partner move, Simon Property Group (SPG -1.20%) might soon be one owner of bankrupt clothing retailer Lucky Brand Dungarees.

The real estate investment trust (REIT), which specializes in shopping malls, jointly with privately held Authentic Brands Group owns SPARC Group. This entity controls a set of clothing brands that includes Nautica and Aeropostale. SPARC has made a stalking horse bid for "substantially all" of Lucky Brand's assets following its bankruptcy declaration on July 3.

Two people modeling Lucky Brand clothes.

Image source: Lucky Brand Dungarees.

A stalking horse bid is one in which a potential buyer makes an initial offer for bankruptcy assets. This usually sets a low-end price; if there are subsequent bidders, they typically place higher offers. By positioning itself as a stalking horse, the bidder typically is rewarded with incentives such as expense reimbursements for the service of setting that pricing floor.

SPARC's offer is $140 million in cash, accompanied by a credit bid of $51.5 million and other consideration. Separately, a freshly created subsidiary of Authentic Brands has made a bid of $90 million for Lucky Brand's intellectual property.

So far, it seems no other entities have yet made bid. Simon has not released a statement on its participation in the Lucky Brand bid. Earlier this year it made a stalking horse bid for the bankrupt Forever 21 in a similar situation.

Simon and Lucky Brand have a history together. The REIT is a landlord for many of the retailer's stores; these are still a common sight in shopping malls throughout the United States. Lucky Brands is currently owned by Leonard Green & Partners, a private equity firm. Leonard Green also holds a minority stake in Authentic Brands Group.

Simon's stock inched up by less than 0.2% on Monday, lagging behind the gains of the major equity indexes on the day.