A new bankruptcy court filing unearthed by Retail Dive shows that Authentic Brands Group and financial firm B. Riley have placed a bid to buy Barneys for $271 million.
The “stalking-horse” bid sees Barney be a part of an open auction for qualified bidders. Potential investors have until Oct. 22 to confirm a bid before an auction takes place on Oct. 24 with the highest bidder taking ownership of the retailer. If no qualified bidders submit proposals by Oct. 22, the ABG and B. Riley offer will be finalized.
If the bid from ABG and B. Riley goes through, the company plans to close seven Barneys stores in the U.S. Stores up for closure include two in New York, three in California and one in Massachusetts.
“B. Riley Financial and our affiliates are pleased to work with ABG in support of preserving the value of Barneys New York and its iconic brand,” a representative from B. Riley commented on the report.
The Wall Street Journal reported earlier this week that ABG was planning to license the Barneys brand in a partnership with Saks Fifth Avenue. According to the report, Saks plans to use the license to open new Barneys stores and takeover the existing Barneys website.
License Global reached out to ABG and Barneys for comment and did not receive a response by the time of publication.