Businessman submits competing Barneys bid
An Israeli businessman has submitted an offer for iconic clothier Barneys New York Inc. as the bankrupt retailer seeks to avoid liquidation, according to a Reuters report.
The bid from Samuel Ben-Avraham, who told the outlet he lined up investors to back him, reportedly competes with the $271 million offer from Authentic Brands Group LLC.
Since filing for Chapter 11 bankruptcy protection in August, the retailer has been seeking bids to best Authentic Brands, according to Reuters.
The deadline for the bids was reportedly set for Wednesday evening.
It remains unclear if Barneys deemed the offer a "qualified bid," which means it meets certain thresholds to be considered in a bankruptcy court auction, the outlet said, citing sources it declined to identify.
A woman walks past a Barneys New York store (Mario Tama/Getty Images, File)
Earlier this month, news broke that Ben-Avraham was leading a group of fashion executives who were preparing a multi-million dollar bid to take control of the luxury department store. At the time, the fashion mogul was assembling retail veterans and investors to help fund the bid, The Wall Street Journal said.
Barneys and Authentic Brands did not immediately respond to FOX Business' requests for comment.
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Barneys, controlled by New York hedge fund Perry Capital, has become the latest retailer to buckle as shoppers move online. It listed more than $100 million in debt and more than $100 million in assets in its bankruptcy filing in August.
This comes as the picture for most traditional retailers grows worse by the year. The number of retail stores closed in the U.S. this year has already surpassed last year’s total, according to Coresight Research, which expects 12,000 will be shuttered in 2019. Coresight said 7,567 retail stores have closed so far this year, compared with 5,864 in all of 2018.
The escalating trade war between China and the U.S. has intensified that pressure, leaving clothing companies scrambling to find new routes and suppliers.
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The Associated Press contributed to this report.