Bankruptcy Judge Approves Sale of Barneys to Authentic Brands Group
It looks like Authentic Brands Group will soon be Barneys’ new owner. According to Vogue bankruptcy Judge Cecelia Morris approved ABG and B. Riley’s $271 million bid. As previously reported, ABG plans to license the Barneys name to Hudson’s Bay Company (owner of Saks Fifth Avenue) and could potentially shutter all locations.
A spokesperson for the retailer confirmed the news to The Daily, but maintained that the sale is still not finalized. “Earlier today, the court approved the sale of Barneys New York to Authentic Brands Group, in partnership with Saks,” they wrote. “Importantly, the sale has not concluded and other bidders can still come forward before tomorrow’s closing. Over the past several months, we have worked diligently with the court, our lenders and creditors to maximize the value of Barneys in this sale process, and we continue to work with all relevant parties towards the best solution for Barneys’ employees, designers and vendors, and customers.”
Another vocal bidder in the race was a group of investors led by KITH co-founder Sam Ben-Avraham. His plan promised to revamp the business and potentially save it from disaster. He even went so far as to launch a petition to “save Barneys,” hoping that community support would strengthen the bid. According to Bloomberg, this bid got the support of big names like Gucci and Prada, who were eager to save jobs. However, the New York Post reports Ben-Avraham informed advisors he would not submit a final bid on Wednesday.
Counter-bids can still be submitted until tomorrow morning.