FBN’s Susan Li on luxury clothing retailer Barneys’ decision to file for Chapter 11 bankruptcy protection and close some stores.
An Israeli businessman has submitted an offer for iconic clothier Barneys New York Inc as the bankrupt retailer seeks to avoid liquidation, Reuters reports.
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The bid from Samuel Ben-Avraham, who told the outlet he lined up investors to back him, directly competes with the $271 million offer from Authentic Brands Group LLC.
Since filing for Chapter 11 bankruptcy protection in August, the retailer has been seeking bids to best Authentic Brands, Reuters reported, saying the deadline for the bids was set for Wednesday evening.
It remains unclear if Barneys deemed the offer a “qualified bid,” which means it meets certain thresholds to be considered in a bankruptcy court auction, Reuters reported, citing sources it declined to identify.
A woman walks past a Barneys New York store (Mario Tama/Getty Images, File)
Earlier this month, news broke that Ben-Avraham was leading a group of fashion executives who were preparing a multi-million dollar bid to take control of the luxury department store. At the time, the fashion mogul was assembling retail veterans and investors to help fund the bid, the Journal said.
Barneys and Authentic Brands did not immediately respond to FOX Business’ requests for comment.
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Barneys has become the latest retailer to buckle as shoppers move online.
Barneys, controlled by New York hedge fund Perry Capital, listed more than $100 million in debt and more than $100 million in assets in its bankruptcy filing in the Southern District of New York.
The picture for most traditional retailers grows worse by the year. The number of retail stores closed in the U.S. this year has already surpassed last year’s total, according to Coresight Research, which expects 12,000 will be shuttered in 2019. Coresight said 7,567 retail stores have closed so far this year, compared with 5,864 in all of 2018.
The escalating trade war between China and the U.S. has intensified that pressure, leaving clothing companies scrambling to find new routes and suppliers. Over the past year, the retail sector has consistently bled jobs.
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The Associated Press contributed to this report.
