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Barneys NY Sale to Authentic Brands Group Gets Final Court Approval

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By: Calvin Preemyer

Authentic Brands Group LLC (ABG) has become the owner of Barneys New York Inc. in the wake of the clothier’s bankruptcy filing.

Executives of ABG have said their strategy going forward till be to shutter almost of the Barneys retail locations, and license its valuable brand.

The ruling came on Thursday after lawyers for Barneys told federal bankruptcy court Judge Cecelia Morris that Authentic was the only qualified bid by the time of Thursday’s hearing in Poughkeepsie, New York. Would-be rivals repeatedly failed to submit credible bids by previous deadlines. A court gave the go-ahead for closing Authentic Brands’ purchase of the bankrupt retailer on Friday.

ABG’s strategy includes “hitching the chain to another iconic retailer, with about 40 Barneys shops opening inside of Saks Fifth Avenue stores. The chain may also have some free-standing locations, including one in Boston and a new site in Greenwich, Connecticut,” according to Crain’s New York Business. “The $271 million Authentic offer met resistance from Barneys’ unsecured creditors, who called it a liquidation bid that would hurt workers, vendors and customers. The group, which included labels like Gucci and Prada, had urged the court to work with a buyer that would keep Barneys stores open, such as entrepreneur Sam Ben-Avraham.”

“We are thrilled that our offer for Barneys has been accepted,” said Jamie Salter, Founder, Chairman, and CEO of Authentic Brands Group, in a message on his firm’s web site. “Barneys is one of the most recognizable and iconic names in luxury lifestyle, and we see an incredible opportunity to extend the brand’s equity in current and new markets around the world. We are also excited to join forces with Saks Fifth Avenue, the preeminent luxury retailer that continues to bring innovation and fashion authority to the industry.”

Barneys, he continued, is “renowned for its discerning edit from the world’s top designers, paired with a unique shopping experience. Its signature sense of wit and style has translated into a global brand that is sought-after by a modern generation of luxury shoppers and trendsetters. Barneys’ distinctive collaborations have a proven track record of driving press, digital and social impact, and millennial appeal.”

Salter also said that his company plans to leverage its “international scale, marketing expertise, and network of best-in-class partners to grow Barneys’ presence as a global luxury retailer and lifestyle brand. Its initial focus will be on high fashion collaborations, namesake products, lively dining, and premium shopping experiences. ABG’s marketing division will drive growth for Barneys while maintaining its elevated aesthetic through innovative creative, original content, and engaging campaigns. The Barneys brand narrative will be powered by Winston, ABG’s proprietary network of creators, curators, and connectors, who have a combined reach of more than 150 million followers on social media.”

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