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Barney’s Dramatic Deal For Its Future
Barneys New York served as an influential American retailer since the 1920s, but in 2019 it went bankrupt and its remaining five stores started a liquidation process.
New owner Authentic Brands Group, a brand manager, marketer and entertainment group, wrapped up a deal for ownership of Barneys on Nov. 1. ABG said that it would selectively license the Barneys New York name. According to media reports, the Barneys name will be licensed to retailers such as Saks Fifth Avenue; however, no formal plans have been announced on what shape a Barneys at Saks initiative would take.
The bankruptcy created a huge outcry on social media as well as in the press. In both formats there was a sense that an era had passed. Ilse Metchek, president of the California Fashion Association, told California Apparel News that fashion had lost a great forum.
“We will mourn the loss of Barneys as one of the last places one could investigate new brands, new lines and new ideas at the couture level,” Metchek said.
The sense that fashion was in danger of losing a crucial forum led to a dramatic showdown for the ownership of Barneys after it declared Chapter 11 bankruptcy in August. ABG was named the stalking-horse bidder and placed a bid of $264 million. It looked like a done deal, but Sam Ben-Avraham, founder of the Liberty Fashion & Lifestyle Fairs and a co-founder of the influential retailer Kith, was wary of ABG taking over Barneys.
Ben-Avraham mounted a social-media campaign, savebarneysny, and gathered a group of investors, including Ron Burkle of Yucaipa Companies LLC. Ben-Avraham collected 19,000 signatures supporting the bid.
Former Barneys owner David Jackson also put together a bid for the company, but his group’s bid did not pull ahead of ABG, which ended up paying $271.4 million for the iconic retailer.
