(Bloomberg) -- A court gave the go-ahead for closing Authentic Brands Group LLC's purchase of bankrupt retailer Barneys New York LLC on Friday.
- “Earlier today, the court closed on the approved sale of Barneys New York to Authentic Brands Group, in partnership with Saks,” a Barneys representative said in an email. “We want to thank all of our hard-working employees, talented designers and vendors, and our loyal customers for being part of the storied history and iconic brand that is Barneys New York.”
- Judge Cecelia Morris approved on Thursday Authentic's $271 million bid to buy the retailer's assets. A creditors' representative called the bid “devastating,” while a lawyer for Barneys predicted it would cause the loss of thousands of jobs. Barneys had said that “other bidders can still come forward” before Friday's closing.
- An earlier bid submitted by a consortium led by entrepreneur Sam Ben-Avraham failed to qualify, but Ben-Avraham and former Barneys owner David Jackson were still working on raising financing for offers, attorneys at Thursday's hearing said, and both were communicating with another potential bidder, Tengram Capital Partners.
- Authentic plans to open Barneys shops in about 40 Saks Fifth Avenue stores.
- NOTE: Barneys Awarded to Authentic Brands as No Rival Bids Appear
The case is Barneys New York Inc., 19-36300-cgm, U.S. Bankruptcy Court for the Southern District of New York (Poughkeepsie).
To contact the reporters on this story: Lauren Coleman-Lochner in New York at llochner@bloomberg.net;Eliza Ronalds-Hannon in New York at eronaldshann@bloomberg.net
To contact the editors responsible for this story: Rick Green at rgreen18@bloomberg.net, Nicole Bullock, Nikolaj Gammeltoft
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