Barneys nears bankruptcy deal with Authentic Brands, Saks owner - sources
By Jessica DiNapoli and Mike Spector NEW YORK (Reuters) - U.S.
By Jessica DiNapoli and Mike Spector
NEW YORK (Reuters) - U.S. luxury department-store chain Barneys New York Inc is nearing a roughly $270 million deal with brand developer Authentic Brands Group that could lead to Barneys shops opening in Saks Fifth Avenue stores, people familiar with the matter said on Monday.
Without an offer from Authentic Brands, Barneys faced winding down its business entirely. It filed for bankruptcy protection in August, citing rent hikes as a factor in its decision.
Authentic Brands' offer for Barneys calls for a handful of its storied brick-and-mortar outposts to remain open, potentially including its flagship Madison Avenue store in Manhattan and its Beverly Hills, California, location, the sources said.
Whether the existing retail locations remain open will depend on negotiations with landlords, they said. Barneys currently has seven physical retail locations remaining.
As part of the Authentic Brands deal, it will license the Barneys name to Hudson's Bay Co
The expected deal with Authentic Brands sets a floor for bids in a bankruptcy-court auction scheduled for later this month, should any arise. A group led by fashion executive Sam Ben-Avraham has explored a bid for Barneys and is continuing to work an a potential deal that envisions keeping many of the retailer's current stores open, one of the sources said.
Ben-Avraham did not immediately respond to a message seeking comment.
“We are encouraged by the strong buyer interest and recognition of the value in the Barneys assets and brand name," Barneys Chief Executive Officer Daniella Vitale said 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.”
Authentic Brands did not immediately respond to requests for comment. Hudson's Bay declined to comment. The sources spoke on the condition they not be identified because the discussions are confidential.
Authentic Brands is a prolific acquirer of labels, including Nine West.
The Wall Street Journal reported on the value of Authentic Brands' bid for Barneys and its partnership with Hudson's Bay earlier on Monday.
Barneys is one of the most high-profile victims of the downturn in retail, and underscores how even luxury department stores are not immune from fierce competition with e-commerce firms such as Amazon.com Inc
Sears Holdings Corp
In addition to its upscale department stores and Freds restaurants, Barneys operates Barneys Warehouse outlets. The nearly 100-year-old retailer's most prominent locations include Beverly Hills, California; Chicago; Seattle; Boston; San Francisco; and Las Vegas.
Barneys made its name in the 1930s by placing women dressed in barrels outside beer halls in New York City, where they would hand out matchbooks advertising the store, according to the retailer’s website.
The store, now known for exclusive apparel made by designers such as Burberry Group Plc
(Reporting by Jessica DiNapoli and Mike Spector in New York; Editing by Stephen Coates)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
By David Shepardson WASHINGTON (Reuters) - The Trump campaign dropped a defamation lawsuit against a small Wisconsin TV station that aired an advertisement opposing Donald Trump's re-election bid that featured verbatim quotes from the president. The ad from Democratic super PAC Priorities USA Action quoted outgoing President Trump saying "We have it totally under control," and "One day it’s like a miracle, it will disappear" as a graph showed the rising number of coronavirus cases.
By Trevor Hunnicutt and David Shepardson WILMINGTON, Del./WASHINGTON (Reuters) - President-elect Joe Biden said on Monday "more people may die" if outgoing President Donald Trump continues blocking a U.S. transition of power as the coronavirus pandemic worsens, and he urged Congress to pass new relief legislation. Biden said business and labor leaders had signaled willingness to work together to bolster the pandemic-battered U.S
By Steve Holland WASHINGTON (Reuters) - President Donald Trump asked for options on attacking Iran's main nuclear site last week but ultimately decided against taking the dramatic step, a U.S. official said on Monday