Barneys New York received a bid to sell its assets to Authentic Brands Group and investment firm B. Riley Financial on Wednesday that would see the closing of all of the luxury chain’s remaining stores.
Authentic Brands, the owner of brands like Nautica and Aéropostale, has agreed to buy Barneys’ name and other assets in partnership with Saks Fifth Avenue, according to a filing Wednesday in U.S. Bankruptcy Court in Poughkeepsie, NY. All of the company’s seven stores have been designated for closing, according to court papers, including the Barneys Madison Avenue flagship and one in Beverly Hills.
“We are encouraged by the stalking horse bid by Authentic Brands Group in partnership with Saks Fifth Avenue,” a Barneys spokeswoman said on Wednesday. The retailer is “actively pursuing” additional options, including from a group led by Sam Ben-Avraham, who have expressed their intent to submit bids during the coming auction process, she said.
The deal is valued at just over $271 million and would avoid a total liquidation of the famed luxury chain, which filed for bankruptcy protection in August.
If no competing bidders come forward by October 22nd, the bankrupt retailer will go ahead with the deal with Authentic Brands and B. Riley Financial. If rival bidders come forward, an auction will be held on October 24th.
Barneys filed for bankruptcy protection after the landlord of its store on Madison Avenue in New York nearly doubled the annual rent to $27.9 million. As part of its August filing, Barneys said it planned to shut most of its 13 department stores and nine warehouse stores but would continue to operate seven locations, including the one on Madison Avenue.