Perry Ellis Bids for Bugle Boy.

Perry Ellis has offered $54 million to acquire the wholesale operations of Bugle Boy Industries Inc. The Simi Valley men's apparel maker is in the process of liquidating its assets after filing for Chapter 11 bankruptcy protection two weeks ago.

Under terms of the agreement, Miamibased Perry Ellis International Inc. would acquire the Bugle Boy name, licensing operations and certain inventory and accounts receivable. If approved by Bankruptcy Court, it would mark the latest acquisition by Perry Ellis International, which owns a number of brands, including John Henry, Ping Collection and Munsingwear.

In striking the preliminary deal with Perry Ellis International, Bugle Boy is separating its clothing manufacturing operation from its retail stores, which are being closed, and selling it as a going concern. Privately held Bugle Boy posted $423 million in sales last year, $154 million of which came from its wholesale operations.

Bugle Boy officials said the deal with Perry Ellis International is not final and that anyone with a higher bid could attempt to purchase the assets out of bankruptcy. The company has also signed an agreement with a consortium of liquidators that will soon begin selling off inventory and closing its 213 retail and outlet stores. The company employs about 3,500 nationwide. Most are in the retail operation and will lose their jobs.

In addition to the proposed $54 million agreement with Perry Ellis International, the deal with liquidators is expected to net Bugle Boy $38 million to pay off creditors, officials said. The company is burdened with an estimated $100 million in debt.