The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
NEW YORK, United States — Licensing company Authentic Brands Group announced Thursday evening that it has emerged as the successful bidder for Barneys New York, as the department store chain approaches the final stretch of its two-month bankruptcy process.
ABG submitted a $271.4 million bid last week, saying it plans to close all seven remaining Barneys stores and license the retailer’s intellectual property to its rival, Saks Fifth Avenue. In ABG’s announcement Thursday, founder and Chief Executive Jamie Salter said that the company’s “offer for Barneys has been accepted.”
In a statement to BoF, Barneys refuted that ABG had won out, citing an Oct. 31 deadline for bids. At least two other groups are attempting to buy Barneys, including one led by early Kith investor Sam Ben-Avraham and another being assembled by David Jackson, former chief executive of Dubai-based Istithmar World, which controlled the department store from 2007 to 2012.
“Barneys is continuing to work towards a value-maximising going concern transaction, 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 October 31 sale hearing,” a Barneys spokesperson said in an email.
Ben-Avraham, a trade show operator who founded the multi-brand store Atrium, submitted a $260 million bid Wednesday that would keep most Barneys stores open, but told BoF he has yet to finalise some details of his proposal. Backing his plan is a group of five retail veterans including Andrew Rosen and Intermix founder Khajak Keledjian.
Jackson is working on a third bid for Barneys on behalf of two investment firms based in the Middle East.
“We are still hoping for [an] extension” to make the Oct. 31 deadline, he told BoF Thursday evening.
The fate of Barneys is not sealed until ABG’s bid is formally approved in court, said Jeff Trexler, an attorney at the Fashion Law Institute.
“In bankruptcy nothing is final until the papers are signed, but it does appear ABG has the momentum,” he said.
Related Articles:
[ The Business of Saving Barneys ]
[ Why Kith's First Investor Hasn't Given Up on Saving Barneys ]
[ Israeli Fashion Mogul Challenges Authentic Brands in Bid for Barneys ]
The World Economic Forum in Davos, a retail convention in New York and menswear shows in Paris will command the industry’s attention. Plus, what else to watch for this week.
The owner of Lanvin, Sergio Rossi and other brands is the first fashion company to list on a US exchange in a year. But the tough economy and investor skepticism about money-losing start-ups is likely to keep others from following suit.
Kanye and Adidas, Johnny Depp and Dior: celebrity marketing can be a minefield as well as a goldmine — and social media has raised the stakes.
High-end brands continue to report record sales and profits, even as mass retailers trim their outlooks for the autumn and winter. Can it last?