Another Fashion saddening has been finalized. The official sale of generational luxury retailer, Barneys New York, has been sold. After days of speculation and false news release, the sale has officially been confirmed and finalized as of today. The sign off was facilitated by Judge Cecelia G. Morris in the sale to Authentic Brands Group and its partner B. Riley Financial. B. Rile Financial offered the Barneys chain with a bankruptcy loan that would acquire their assets and intellectual property for the price of $271.4 million.
The unfortunate sale comes with the lay off of thousands of employees, the closing of a majority of its stores, liquidating its remaining assets, and licensing the Barneys New York name and intellectual property to competing retail chain Saks Fifth Avenue. Sam Ben-Avraham, the competing investor very vocal about his place in bidding n the purchase, made a published a post detailing his current state responding to fans calling him out on creating hype with no real intention on purchasing the beloved brand. “Dear Family, Last night after two months of working around the clock, my team and I had to make the hardest decision we could have imagined: to pull out of the race and not go to court this morning. This was one of the hardest decisions I have made in my life thus far. Unfortunately, we failed to convince enough people in the business community that it made economic sense to keep Barneys alive. Some unexpected road blocks were put in our way. We understood from the beginning that looking at spreadsheets and numbers, it did not make sense, but we saw a future beyond that. We knew that once we overcame that hurdle there would be light at the end of the tunnel. I apologize if I have failed anyone, and gave anyone false hope by not being able to close the deal.”
New owners ABG, whom also own Juicy Couture, released the following statement following the court ruling. “ABG will leverage its international scale, marketing expertise, and network of best-in-class partners to grow Barneys New York’s global presence across retail, including pop-ups, shop-in-shops, e-commerce, and a new freestanding store in a key US market. Its initial focus will be on high-fashion collaborations, branded namesake products, and expanding international retail in both brick and mortar and [e-commerce.] There is also a strategy in development for Freds to export this beloved eatery to luxury destinations around the world.”
According to BoF, the new parent company has shared the details behind the iconic Madison Ave location, stating that it’ll be transformed into a “pop-up retail experience” that will allegedly include “art installations, boutiques and entertainment.” Rumors are going around of a “liquidation sale that could put Barneys’s legendary Warehouse Sales to shame” Vogue states, continuing “that all remaining merchandise, the highest-end of luxury goods, could be marked down intensely.”
We will continue to update as more information comes available.