Bankrupt Barneys Reportedly Close to Securing Stalking-Horse Bid From ABG
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Barneys New York is reportedly moving ahead with an offer from potential buyer Authentic Brands Group.
The bankrupt luxury retailer has been working on Tuesday to finalize an official bid with debtor-in-possession lenders during the Chapter 11 process, according to a report from FN’s sister publication WWD. It has until 5 p.m. to straighten out the details of a deal, which could potentially see ABG named as a stalking-horse bidder ahead of the scheduled Oct. 24 auction, WWD added.
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Although details of the proposal were not disclosed, a source reportedly told WWD that ABG was working with B. Riley Financial Inc. to review the terms of the agreement, which was said to have been submitted late Monday. (The investment banking firm is one of the retailer’s DIP lenders.)
It comes a day after reports suggested ABG had prepped a nearly $270 million bid after Liberty Fairs trade show owner Sam Ben-Avraham’s supposed offer fell apart.
Court filings on Thursday read that Barneys had been wrapping up talks with “multiple bidders” as it moved toward the later stages of discussions with a possible buyer. On Friday, the high-end department store received an extended deadline that bought it until Tuesday to solidify a deal with one such bidder.
That’s not to say ABG won’t be facing competition: Other potential bidders can still snap up the bankrupt Barneys when it hits the auction block on Oct. 24.
It’s been just over two months since the storied retailer filed for Chapter 11 bankruptcy protection, securing $218 million in financing in early August that allowed it to maintain operations.
A Manhattan mainstay for nearly a century, Barneys has struggled amid skyrocketing rents and shifting consumer demands that have weighed heavily on its margins. Over the past month or so, it shuttered units in Las Vegas, Chicago and Seattle, and it closed some warehouse locations and smaller concept stores as part of its restructuring plan. The company has managed to continue paying employee wages and honoring customer orders as it works toward meeting its financial commitments.
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