Barneys New York Inc. is close to being sold to Nine West and Juicy Couture owner Authentic Brands Group LLC after an offer from another potential buyer fell through, Reuters reported Oct. 24, citing people familiar with the matter.
The bankrupt fashion retailer agreed to Authentic Brands and investment firm B. Riley Financial Inc.'s $271.4 million rescue deal that would see Barneys giving up its assets and the buying group closing all of Barneys' seven remaining stores.
Sources told Reuters that Barneys now plans to call off an auction scheduled for Oct. 28 after a competing bid from Israeli businessman Samuel Ben-Avraham — who owns fashion trade shows and was a co-founder of streetwear retailer Kith — failed.
The sources reportedly added that a last-minute bidder could still place an offer ahead of the expiration of Authentic Brands' offer on Oct. 31. Under Barneys' stalking horse asset purchase agreement with Authentic Brands, the bankrupt chain would need to pay an $8.1 million breakup fee if it finds another buyer.
Reuters said Barneys did not immediately respond to a request for comment, while Ben-Avraham declined to comment.
Meanwhile, Authentic Brands told the news outlet: "We look forward to proceeding with our plans for Barneys as we continue the closing process. ... Our goal is to preserve and build upon Barneys' legacy and evolve it for the future."
Following the closing of the deal, Authentic Brands plans to keep some physical Barneys stores open depending on negotiations with landlords.
When Barneys filed for Chapter 11 bankruptcy protection in August, the company declared an estimated debt of $100 million to $500 million to creditors and landlords.