Barneys New York mulls buyout plan from retail investor group

Bloomberg

Barneys New York Inc is in advanced talks with a group of retail industry investors looking to buy the company out of bankruptcy for about $220 million, according to people with knowledge of the situation.
The effort is being led by Sam Ben-Avraham, known for his roles in starting New York retail store Atrium and streetwear brand Kith, the people said. They asked not to be identified discussing a private matter.
The bid is one of several that have emerged as the retailer seeks to find a suitor for its assets to avoid liquidation. Authentic Brands Group LLC has also been in discussions about acquiring the Barneys name, Bloomberg previously reported.
The joint bid led by Ben-Avraham is the furthest along and it contemplates an asset-based loan and cash to keep Barneys operating, the people said.
The talks are continuing, and there’s no certainty that a deal will be reached, the people added. Any offer would need approval from the bankruptcy court.
“We are in advanced negotiations with a potential purchaser and intend to reach an agreement by next Friday,” Barneys said.
Ben-Avraham couldn’t be reached for comment and Authentic Brands had no immediate comment. The Wall Street Journal previously reported the potential deal.
Barneys filed for Chapter 11 in August with plans to shutter most of its stores after getting squeezed by rising rents and fewer visitors.