Barneys New York is reportedly closing in on a $270 million deal with Authentic Brands Group that could lead to Barneys shops opening in Saks Fifth Avenue stores, people familiar with the matter told Reuters. The bid will go up against a group led by fashion executive Sam Ben-Avraham, who earlier offered $220 million and is still pursuing a deal, according to the sources.
Authentic Brands would license the Barneys name to Hudson’s Bay Co. (HBC) and would also allow HBC to operate the Barneys web site. Additionally, Authentic Brands plans to leave several of Barneys’ seven remaining locations open, including its flagship Madison Avenue store in Manhattan and its Beverly Hills, Calif., location, according to the sources. However, the fate of these stores will depend on negotiations with landlords.
“We are encouraged by the strong buyer interest and recognition of the value in the Barneys assets and brand name,” said Daniella Vitale, CEO of Barneys in a statement. “We continue to work diligently on the sale process with the goal of maximizing value and ensuring a long and successful future for the benefit of our employees, customers, vendors and other business partners.”
Should Authentic Brands Group’s bid succeed, Barneys will join a retail portfolio that includes Premier Brands Group Holdings (formerly Nine West Holdings), Bandolino and Camuto Group. The brand management firm was also part of a group that saved Aéropostale from liquidation in 2016.