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Barneys to sell assets to Authentic Brands, B. Riley for $271.4M


According to Market Intelligence, December 2022


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Barneys to sell assets to Authentic Brands, B. Riley for $271.4M

Bankrupt fashion retailer Barneys New York Inc. has reached a rescue deal to sell its assets to Authentic Brands Group LLC and investment firm B. Riley Financial Inc., according to an Oct. 16 filing to the U.S. Bankruptcy Court for the Southern District of New York.

Barneys and the buyers entered into a stalking horse asset purchase agreement for all of Barneys' assets in a deal worth approximately $271.4 million. After the sale, the buyers will close all of Barneys' seven remaining stores: three in New York, three in California and one in Boston.

The filing confirms a report by The Wall Street Journal on Oct. 14 that said Authentic Brands was planning to bid for Barneys' assets.

Barneys rival Saks Fifth Avenue LLC, owned by Hudson's Bay Co., which was earlier reported to be teaming up with Authentic Brands for the bid, was not mentioned in the Oct. 16 filing. However, the Journal reported the same day that a Barneys spokeswoman said the company is "encouraged by the stalking horse bid by Authentic Brands Group in partnership with Saks Fifth Avenue."

The spokeswoman reportedly added that the retailer is actively pursuing other options, including from a group led by clothing entrepreneur Sam Ben-Avraham.

In the filing, Barneys said the stalking horse agreement with Authentic Brands and B. Riley is subject to court approval and "any higher or better offers." Other potential bidders have until 5 p.m ET on Oct. 22 to submit their bids.

If Barneys is able to secure another buyer, the retailer would need to pay an $8.1 million break-up fee to Authentic Brands and B. Riley.

Barneys filed for bankruptcy protection in August, declaring an estimated debt of $100 million to $500 million.