Barneys New York may soon have a new owner.
On Wednesday, the bankrupt company reached a tentative $271 million agreement to sell its remaining assets to Authentic Brands Group and investment firm B. Riley Financial. According to court documents, the deal calls for the closure of Barneys' seven remaining locations, which includes its flagship location on Manhattan's Madison Avenue.
"This development is a positive step forward for Barneys, and a strong recognition of the value of Barneys' assets and brand name," a company spokesperson said in a statement to Business Insider. "We are working hard to achieve a successful sale process that will preserve the integrity of this incredible brand and ultimately benefit our employees, customers, vendors, and other business partners."
The deal as it stands would prevent total liquidation of the store, through a restructuring process in which Authentic Brands Group would license the Barneys name to Saks Fifth Avenue, the Wall Street Journal reported. This would effectively allow Saks to feature Barneys in its own stores and sell its products.
However, while the company spokesperson said Barneys is "encouraged by the stalking horse bid by Authentic Brands Group in partnership with Saks Fifth Avenue" the deal is not definitive, as Barneys is still weighing offers from other bidders in advance of the October 24 auction. Among them is a group led by Kith cofounder and owner Sam Ben-Avraham, which the spokesperson said is among options Barneys is "actively pursuing."
If the Authentic Brands Group deal does go through, it's also possible that select stores may remain standing, depending on discussions with landlords, a source told the Journal.
Authentic Brands Group has been credited with breathing new life into dying brands in recent years, through savvy acquisitions and revitalization strategies. With the help of ABG's ownership, formerly beleaguered brands including Aeropostale and Juicy Couture have made comebacks.
Authentic Brands Group was not immediately available to respond to Business Insider's request to comment.
