Recently, Barneys- the luxury department store is the talk of the business world. Like Saks Fifth Avenue, along with the well-known licensing firm Authentic Brands Group is on the verge of acquiring the former’s assets due to $270 million bankruptcy as per the sources.
It is considered beneficial for the Barneys to save three of their stores situated in Beverly Hills, Midtown Manhattan, along with the one in Boston once the court gives a ‘yes’ to the deal. Further, making its existence in the burgeoning stores of Saks, as mentioned by the sources.
As per the deal, ABG would gain the brand of Barneys, whereas Saks is expected to operate Barneys.com accompanied by facilitating Barneys store under its space by paying the licensing fee. These stores could be of the size ranging from 10,000- 50,000 square feet. Thus, making its existence as a mini-store under Saks umbrella.
However, ABG is under discussion with Barley’s proprietor, Ashkenazy Acquisition, to not to shut the stores both in Beverly Hills and Madison Avenue flagship, due to paying a considerable amount as rent.
Moreover, the famous branding company of both Juicy Couture and Frederick’s of Hollywood brands is taking the side of ABG by asking to keep the Barneys Boston store functioning, this person said.
Besides, the decision of Barneys to save Madison Avenue location may cost losing its six floors, leading to its presence only in four floors.
Saks legal owner, ABG, and Hudson’s Bay Group are the predominant bidders that filed bankruptcy protection on August 6 followed by avoiding liquidation along with finding buyers till Oct.24.
The hearing regarding the approval of Saks and ABG’s collaboration that was disclosed by The Wall Street Journal is scheduled for Tuesday by the court.
Even though the firm is trying to keep its stores functioning in the significant three locations, staffs are under the fear of losing their job, as said by an insider. Amidst them, few have already initiated their job hunt while many from the Fifth Avenue headquarters sneaked out noontide for sympathizing at a watering hole in the vicinity, reported by a source.
The resume in the functioning of the Madison Avenue store is entirely dependent on the lease negotiations as predicted by some of the sources. Source even added that re-open of the store after the settlement of issues will be a fresh start.
As per the reports, the company head of Hilldun Corp, Gary Wassner showing interest in buying the storied retailer of the Barneys due to the long-term professional tie.