FBN’s Susan Li on luxury clothing retailer Barneys’ decision to file for Chapter 11 bankruptcy protection and close some stores.
Barneys New York has a deal to sell its assets to Authentic Brands Group and investment bank B. Riley Financial Inc.
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The agreement calls for all remaining Barneys locations to close.
The deal for the luxury department store chain, is a ‘stalking horse purchase agreement’, with the purchase price estimated to be about $271.4 million in cash, according to a filing in the U.S. Bankruptcy Court in Poughkeepsie.
A “stalking horse” bid is used as a starting bid or minimally accepted offer that other interested bidders must surpass if they want to buy the company, Reuters reported.
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If additional bids come in for the retailer, a bankruptcy auction will be held on Oct. 24.
Authentic Brands, the owner of brands Nine West and Aeropostale, plans to license the Barneys name to Saks Fifth Avenue, which may lead to Barneys shops opening in Saks Fifth Avenue stores.
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Barneys filed for bankruptcy protection in August.
