Authentic Brands, Saks team up to bid for Barneys

Barneys New York Inc. Wednesday reached a deal to sell its assets to Authentic Brands Group LLC and investment firm B. Riley Financial Inc. and close the luxury chain’s remaining stores.

Authentic Brands, the owner of brands like Nine West and Aéropostale, has agreed to buy Barneys name and other assets in partnership with Saks Fifth Avenue, according to a filing Wednesday in U.S. Bankruptcy Court in Poughkeepsie, N.Y. All of the company’s seven stores have been designated for closing, according to court papers, including the Barneys Madison Avenue flagship and one in Beverly Hills.

“We are encouraged by the stalking horse bid by Authentic Brands Group in partnership with Saks Fifth Avenue,” a Barneys spokeswoman said on Wednesday. The retailer is “actively pursuing” additional options, including from a group led by Sam Ben-Avraham, who have expressed their intent to submit bids during the coming auction process, she said.

It is possible that Authentic Brands could keep some stores open, depending on the outcome of talks with landlords, a person familiar with the matter said. The deal is valued at just over $271 million and would avoid a total liquidation of the famed luxury chain, which filed for bankruptcy protection in August.

An expanded version of this report appears on WSJ.com.

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