Authentic Brands Group (ABG) has emerged as the successful bidder for bankrupt luxury department store operator Barneys New York Inc.
The sale is subject to final approval by the United States Bankruptcy Court for the Southern District of New York at a hearing on 31 October. It is expected that the transaction [an undisclosed sum] will close by 1 November.
ABG said it will grow Barneys’ presence as a global luxury retailer and lifestyle brand, after it filed for bankruptcy in August. Its initial focus will be on high fashion collaborations, namesake products, and premium shopping experiences. As a result of the purchase, Saks Fifth Avenue will partner with ABG-owned Barneys in the US and Canada.
ABG received €875m (£724.4m) in funding from its now largest investor, private equity fund BlackRock Long Term Private Capital (LTPC) in August. The investment will support ABG’s worldwide expansion plans and platform evolution.
Jamie Salter, founder, chairman, and CEO of Authentic Brands Group said: “Barneys is one of the most recognizable and iconic names in luxury lifestyle, and we see an incredible opportunity to extend the brand’s equity in current and new markets around the world. We are also excited to join forces with Saks Fifth Avenue, the pre-eminent luxury retailer that continues to bring innovation and fashion authority to the industry.”
Brand house ABG currently owns more than 50 fashion and lifestyle brands, including Juicy Couture, Tretorn, Hervé Léger and Nine West.