Barneys in negotiations with $220 million bidder
Bankrupt luxury department store operator Barneys New York Inc. is reportedly in talks with a potential buyer preparing a bid of $220 million in order to help prevent the retailer from going into liquidation.
According to the Wall Street Journal, Barneys’ lawyer said that the company was in negotiations with a potential buyer during a bankruptcy hearing on Thursday, when a judge extended the deadline for bids until October 11.
Citing people familiar with the matter, the publication further reported that the bidder in question is a group of fashion executives led by Sam Ben-Avraham, whose impressive track record includes founding NYC-based menswear store Atrium and co-founding cult streetwear label Kith.
The executive is apparently gathering support from other retail vets and investors to raise funds for the bid.
“We are in advanced negotiations with a potential purchaser and intend to reach an agreement by next Friday,” said a Barneys spokesperson to the Journal, confirming the talks but offering no information concerning the identity of the bidder.
WSJ further highlighted that the bid is expected to include an asset-backed loan and cash, as well as a deal with the landlord of Barneys’ Madison Avenue and Beverly Hills stores.
Barneys filed for bankruptcy in August after a steep rent hike at its Madison Avenue flagship compounded issues the retailer was already facing due to increased competition from digital rivals.
At the time, the department store operator announced plans to close locations in Chicago, Las Vegas and Seattle, as well as five concept stores and seven Barneys Warehouse stores.
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