Authentic Brands Group to acquire Barneys

Barneys New York has been provisionally sold to Authentic Brands Group (ABG) in a $271.4 million deal. The iconic US department store had been forced into Chapter 11 bankruptcy protection in August of this year and had been searching for a buyer.

ABG, which owns brands such as Nine West, Herve Leger and Juicy Couture, was founded in 2010 by former Hilco Consumer Capital CEO Jamie Salter.

In a statement Salter said: “We are thrilled that our offer for Barneys has been accepted. Barneys is one of the most recognisable and iconic names in luxury lifestyle, and we see an incredible opportunity to extend the brand’s equity in current and new markets around the world."

He said the group planned to license the Barneys brand to former rival department store Saks Fifth Avenue in the US and Canada. And he added that it would also be expanding its presence in Asia and would keep its 12 stores in Japan open. However it is understood that a number of US stores, apart from Boston, would be liquidated. ABG is reported to be trying to retain some other stores including on New York's Madison Avenue.

ABG said it would leverage Barneys "international scale, marketing expertise, and network of best-in-class partners to grow Barneys’ presence as a global luxury retailer and lifestyle brand. Its initial focus will be on high fashion collaborations, namesake products, lively dining, and premium shopping experiences. ABG’s marketing division will drive growth for Barneys while maintaining its elevated aesthetic through innovative creative, original content, and engaging campaigns."

ABG has acquired the intellectual property of Barneys including the brands FiveSeventyFive, Connor New York, Freds, and Freds Foods, The High End and The Drop.

“As we further our mission to be the ultimate luxury retail destination for exploration and discovery of new fashion, we carefully select partners that can bring originality and excitement to the customer experience. Barneys’ iconic name brand has long captured the attention of fashion-seeking audiences,” said Marc Metrick, President of Saks Fifth Avenue.

“As we explore opportunities for the brand as part of Saks Fifth Avenue, we are working to best understand what Barneys’ customers love about the retailer as we evolve it into a new interpretation that is relevant for today’s luxury consumer. We’re thrilled to partner with ABG, a leader in brand-building and marketing, in this endeavour,” Metrick added.

The sale is subject to final approval by the United States Bankruptcy Court for the Southern District of New York at a hearing on 31 October.

Barneys said it had been forced to file for bankruptcy due to tough trading conditions, the migration of consumers to online stores and excessive rents at its Madison Avenue flagship.