Barneys New York, a renowned luxury department store, is currently in discussions with a potential buyer who is gearing up to make a $220 million bid in an effort to avoid liquidation. This bid is being spearheaded by a group of fashion executives, including Sam Ben-Avraham, who is recognized for his involvement in establishing NYC menswear store Atrium and co-founding streetwear label Kith.
The Wall Street Journal reported that negotiations with the potential buyer took place during a recent bankruptcy hearing, where the deadline for bids was extended until October 11. It is rumored that the bidder is collaborating with other retail veterans and investors to secure the necessary funds to support the bid. Despite confirming the ongoing talks, Barneys’ spokesperson has not revealed the identity of the potential buyer.
The proposed bid is anticipated to involve an asset-backed loan and cash, and discussions are underway with the landlords of Barneys’ Madison Avenue and Beverly Hills locations. Following a rent hike at its flagship Madison Avenue store, Barneys filed for bankruptcy in August and subsequently closed several stores, including those in Chicago, Las Vegas, and Seattle, as well as concept stores and Barneys Warehouse outlets.
While facing stiff competition from digital luxury retail competitors, this potential acquisition presents a glimmer of hope for the iconic retailer to stay afloat. Although the final agreement has not yet been reached with the bidder, negotiations are progressing well, with the aim of coming to a resolution by the end of the week.
For more information on the latest developments in the luxury retail industry, check out these relevant links: Business of Fashion and Vogue Business.
