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Barneys’ stalking horse includes Authentic Brands
Posted on Thursday, 17 October 2019 11:17
A consortium comprising Authentic Brands and B Riley Financial is the stalking horse bidder for the Barneys name and other assets of Barneys New York in a deal that is believed to include a partnership with Saks Fifth Avenue. The would-be acquiror may close all seven existing stores, including two in Manhattan and one in Beverly Hills, according to the court filing yesterday. However, sources with knowledge of the matter told Bloomberg the Authentic Brands-led group’s proposal includes opening Barneys concessions in Saks Fifth Avenue locations. The agreement values certain business and operations of the troubled retailer at roughly USD 271.00 million but a deal is not done and dusted as potential rivals have until 22nd October to table competing offers. Reports suggest a Sam Ben-Avraham-led group may yet step up to the plate; the co-founder of the streetwear label Kith told Bloomberg he intends to make a play for the iconic luxury department store. Ben-Avraham noted his offer would “maintain the integrity of the brand and its relationship with the customers, suppliers, and workers”. He added: “Authentic Brands has a business model in which they acquire intellectual property from companies and they have a system for monetising it. “I’m coming from a different world, and our approach is developing brands to maximize the potential but still maintain the integrity of the brand.” The Wall Street Journal reported Ben-Avraham was pipped to the post of becoming a stalking horse as he was unable to establishing financing in time. Authentic Brands is a New York City-based brand development, marketing and entertainment company backed by BlackRock Long Term Private Capital, General Atlantic, Leonard Green & Partners and Lion Capital. It has a portfolio of 50 labels that range from Aeropostale, Henredon and Nine West to Sports Illustrated and Spyder. © Zephus Ltd