A Barneys New York attorney informed a bankruptcy court Thursday that "advanced negotiations" have gone down with a possible buyer. Per sources cited in a new Women's Wear Daily report, that possible buyer is Kith investor Sam Ben-Avraham.
The sale price, the report adds, is estimated to be in the $220 million range. Though Ben-Avraham is not the sole party to have expressed interest in a buy, the report states that Ben-Avraham is one of only two to have outlined their intentions as centered on taking on the entire company "as a going concern." Other alleged interest-expressers (including Neiman Marcus' parent company Ares and Nordstrom Inc.) are said to have only wanted intellectual property or other assets.
Ben-Avraham was not named in court. However, a Barneys attorney said the company was on track to have reached a deal by Oct. 11, the same day a hearing is expected.
Back in August, Barneys initiated a Chapter 11 filing. At the time, Business of Fashion listed the brand’s liabilities as being between $100 million and $500 million. The Chapter 11 filing allowed Barneys to remain open for business while working out a path toward debt repayment.
For a more detailed and readable breakdown of the possible power of a Ben-Avraham buy, look no further than GQ's Rachel Tashjian, who noted that peak Barneys successfully represented the spirit of New York. That New York, however, is no longer recognizable amid a consumer environment driven by streetwear tastemakers and more modern-leaning experiential approaches to retail.