By: John Santarino
More than Barneys wants people to buy its clothes, it wants someone to buy Barneys. And it may have found a buyer at last.
London-based online retailer Farfetch may be the failing retailer’s white knight.
At the same time, conflicting reports say it ain’t so.
“Barneys, which has been scouting for buyers since before it filed for bankruptcy on Aug. 6, is in talks to sell itself to Farfetch in a deal that would also save the high-end clothing seller’s flagship Manhattan store, where it has been selling pricey duds for 26 years,” reported The New York Post. “Farfetch, which peddles luxury brands including Gucci, Karl Lagerfeld and Chanel, kicked off negotiations with Barneys before its Chapter 11 bankruptcy filing — but the talks have been heating up, sources said. In one sign of how serious things are getting, the e-tailer has even convinced the landlord of Barneys’ crown jewel location on Madison Avenue to slash the rent and take back 40% of the 10-story store, sources said.”
And yet, the Post’s story was almost immediately refuted. “Contrary to a New York Post story, luxury e-commerce site Farfetch isn’t negotiating to buy Barneys New York,” noted fortune.com. “The story is incorrect—Farfetch is not acquiring Barneys New York,” the online retailer said in a statement issued today.”
Still, the rumor wasn’t all that far-fetched. As the web site went on to explain, “Portuguese businessman Jose Neves started Farfetch in 2008 as a luxury e-commerce marketplace where consumers could find unique items from all over the world. Since going public last year, the company has acquired brands including Off-White parent company New Guards (for $675 million), Style.com, Fashion Concierge, and specialty sneaker retailer Stadium Goods. The platform is available in 190 countries, and stocks roughly 1,100 brands from 50 countries. The company also has invested in what it calls an “augmented retail experience” driven by data, and being piloted with Chanel, Farfetch said.”
“A source familiar with the matter also told Fast Company that the story was inaccurate,” the business publication said. “Oh well, it was fun while it lasted. We’ll just go back to reading The Rise and Fall of the House of Barneys: A Family Tale of Chutzpah, Glory, and Greed and shopping on Farfetch.”
“It has been striking, over the last few weeks, to watch the almost gleeful flow of reports and speculation about the maybe-probably-now-confirmed bankruptcy of Barneys New York, the fabled department store,” is how the New York Times told the tale recently.
