Luxury department store Barneys New York has reached a tentative $271 million deal to sell its assets to Authentic Brands Group and investment firm B. Riley Financial.
The agreement with Authentic Brands, owner of Nine West and Aéropostale, and Saks Fifth Avenue could lead to Barneys closing its remaining seven stores, including the Barneys Madison Avenue flagship and one in Beverly Hills, court documents show.
The luxury department store chain will go ahead with the deal if no competing bidders come forward by October 22. If rival bidders come forward before then, an auction will be held on October 24.
According to a report by The Wall Street Journal, a Barneys spokesperson said on Wednesday that they are encouraged by the stalking horse bid by the Authentic Brands Group in partnership with Saks Fifth Avenue but are also actively pursuing additional options.
The Wall Street Journal said Authentic Brands could keep some stores open, depending on the outcome of talks with landlords.
The deal could mean Barneys avoids total liquidation, after filing for Chapter 11 bankruptcy protection in August.
Squeezed by soaring rents and falling revenue, the high-end American department store announced it would close 15 locations, leaving it with seven stores and two Barneys Warehouse locations.