By: Amos McGilicuddy
Who will end up with Barneys?
An auction that had been scheduled next week for Barneys New York Inc. has been canceled. According to reports, a group led by entrepreneur Sam Ben-Avraham was not able to place a qualifying bid.
“Authentic Brands Group LLC, currently the only qualified bidder for Barneys, said in a statement that it expects to complete its purchase of Barneys intellectual property on Oct. 31, subject to customary closing procedures,” reported Crain’s New York Business. “But Barneys plans to continue to negotiate toward rival “going concern” bids despite the auction cancellation.”
“We are continuing to work towards a value-maximizing going concern transaction for the company, including in relation to a potential transaction led by Sam Ben-Avraham and his group of financial, operational, and strategic partners, up to and including the Oct. 31 sale hearing,” a Barneys representative said in an emailed statement.
“The retailer confirmed that a sale hearing was scheduled for Oct. 31, when a judge is expected to make a final decision about Barneys’ new ownership. (The planned auction on Oct. 28 had been canceled after debtors filed a notice with the court saying that no other qualified bids were submitted.),” reported trade publication Footwear News. “It marked the latest development in Barneys’ bankruptcy saga. On Oct. 16, a filing with the U.S. Bankruptcy Court in the Southern District of New York read that Barneys had entered into an agreement to sell its assets to ABG and B. Riley Financial Inc. in a cash deal estimated at roughly $271.4 million, as part of a stalking-horse bid.”
Several interested parties have emerged, “including Ben-Avraham, who over the weekend launched a public campaign dubbed “Save Barneys” centered around raising capital to complete his bid for the retailer, the footwear publication added. “Despite ABG’s confirmation yesterday of its victory, a statement posted yesterday on the Save Barneys Instagram page read, “We’re still here, working 24/7, around the clock to #SaveBarneys, and we’re not going anywhere … We have a different vision that would champion the community, respect it’s [sic] cultural impact, and continue its history. We believe Barneys still has a bright future ahead.”
ABG put out a statement saying how happy it was go have gotten Barneys. “We are thrilled that our offer for Barneys has been accepted,” said Jamie Salter, Founder, Chairman, and CEO of Authentic Brands Group, in a statement on his company’s web site. “Barneys is one of the most recognizable and iconic names in luxury lifestyle, and we see an incredible opportunity to extend the brand’s equity in current and new markets around the world. We are also excited to join forces with Saks Fifth Avenue, the preeminent luxury retailer that continues to bring innovation and fashion authority to the industry.”
