Authentic Brands Group (ABG) is claiming victory as it emerges as the successful bidder to purchase the intellectual property of Barneys New York for $271.4 million.
Multiple reports state that a rival $260 million bid placed by Sam Ben-Avraham was rejected by Barneys, thus allowing the licensing group to retain priority in acquiring the iconic NYC-based retailer.
Prior to placing an official bid, Ben-Avraham made headlines for creating the #SaveBarneys social media campaign and accompanying @savebarneys Instagram account and #SaveBarneys hashtag, spearheaded by a petition called “Barneys, I love You.” In a public essay, Ben-Avraham opined the benefits of maintaining Barneys’ brand image integrity after its sale.
When ABG takes over, layoffs would reportedly hit staff at Barneys’ two Manhattan stores, its e-commerce unit and back-office facility in Long Island City, its Woodbury Common outlet center, and its Fifth Avenue headquarters.
However, the sale is still subject to final approval by the United States Bankruptcy Court for the Southern District of New York at a hearing on October 31, 2019, and the customary closing conditions set forth in the purchase agreement. It is expected that the transaction will close by November 1, 2019.
Upon the closing of the transaction, ABG will acquire Barneys New York and the associated intellectual property including Barneys, FiveSeventyFive, Connor New York, Freds, and Freds Foods, The High End, and The Drop.
ABG will then selectively license the brand around the world to support the growth of the Barneys-branded merchandise program, and will also maintain Barneys’ current licensing agreement with Seven & I Holdings, which operates 12 Barneys retail stores in Japan. The stores will remain open.
Following ABG’s purchase of the Barneys intellectual property, Saks Fifth Avenue will become the retail partner for the brand in the U.S. and Canada.