American brand management company ABG has successfully completed the acquisition of luxury department store Barneys New York, a move that comes after Barneys filed for Chapter 11 bankruptcy almost three months ago. The acquisition, valued at approximately $271 million in cash, recently received court approval, beating out a competing offer from Samuel Ben-Avraham. Now, ABG is setting its sights on revitalizing the iconic brand.
Looking ahead, ABG has big plans for Barneys’ global presence. Utilizing its international reach, ABG aims to enhance the brand’s visibility worldwide through a variety of channels including pop-ups, shop-in-shops, e-commerce, and the opening of a new standalone store in a strategic U.S. market. To further strengthen the brand’s market presence, the Barneys name will be licensed to Saks Fifth Avenue, which will serve as the exclusive retail and e-commerce partner for the brand in the U.S. and Canada.
As part of the revitalization strategy, ABG will introduce a new shop-in-shop at the Saks Fifth Avenue flagship in New York, creating immersive and engaging experiences that resonate with Barneys’ high-fashion ethos. The focus will be on collaborations with top designers and expanding the brand’s footprint in international markets. Despite initial reports of store closures, plans have been unveiled to transform the Madison Avenue flagship into a pop-up retail space incorporating cultural installations and exhibits.
Barneys’ struggles leading up to the bankruptcy filing were exacerbated by a rent increase at its flagship New York location, making it challenging to compete in the ever-evolving retail landscape dominated by online behemoths such as Amazon. ABG’s goal is to bring Barneys New York into a new era while honoring its rich heritage, laying a solid foundation for the brand’s future success.
For more details on the acquisition and ABG’s plans for Barneys New York, click here. To learn more about the partnership between Barneys and Saks Fifth Avenue, visit here.
