Authentic Brands Group LLC is planning to bid over $270 Million to buy Barney New York Inc. The offer is definitely a lifeline to the clothing line after it filed for bankruptcy protection in August, subsequently finding a bidder to keep the brand alive.
What’s the deal?
According to the Wall Street Journal, the brand owners are in discussion to open Barney’s store in some of its stores and take over its website. If the deal succeeds, Authentic Brands would license Barney Stores to Sakes fifth Avenue.
Amid the talk, the Group is in talks with Barney Stores Landlords about keeping some stores open. It’s also planning to open a freestanding Barneys store in Greenwich, Connecticut, and other possible locations.
Barney’s filed for bankruptcy due to the rising rents that made it shut multiple stores and warehouses. In the filed bankruptcy, it said it would close 15 of its 22 stores.
How will deal profit Authentic Brands?
Authentic Brands own about 50 brands that include Aeropostale and Nine West and the addition of Barney’s contemporary and modern fusion apparel will right away entice the young generation.
Well, Authentic Brands is just not only the group looking forward to reviving Barney’s. Hilldun Group Chief Executive Gary Wassner said that he’s also negotiating to resurrect the company.
“I’ve been looking at every conceivable option for the company and brand, and speaking with many of the various interested parties,” Wassner said in an email to Bloomberg. “I’d like to play a part in saving the brand and some brick-and-mortar version of it, in some capacity.”