According to the Wall Street Journal Barneys has brokered a deal in the amount of $271 Million yesterday with Authentic Brands that would protect the luxury fashion retailer from low court auction bids and total liquidation. The restructuring deal would close both flagship stores in Beverly Hills and Madison Avenue in New York, as well as the remaining five stores.
A “Stalking Horse Agreement” was reached in partnership with Saks Fifth Avenue and Authentic Brands, which owns Aeropostale and Nine West to purchase Barneys yesterday. Under this “type” of purchase agreement Barneys can select the buyer to prevent low bids at a court auction. Barneys can continue the auction up until Oct 24 for other bids, however if no other bids are made, Barneys will go with the Authentic Brands deal which will close all seven stores.
If no other bids are made by the deadline and the deal with Authentic Brands goes through, Saks Fifth Avenue will open mini versions of Barneys in it’s stores and take over the online operations according to the Wall Street Journal.
So there is a chance that Barneys may live on as a part of Saks Fifth Avenue.