In August, Barneys New York announced that the company filed for bankruptcy. Kith investor Sam Ben-Avraham launched a Save Barneys NY campaign and reportedly bid $260 million to keep the retailer open but later withdrew his bid. On Thursday, October 31, Barneys’ ongoing bankruptcy saga ended after a judge approved a deal to sell Barneys to Authentic Brands Group and B. Riley Financial Inc. for $271.4 million, Business of Fashion reports.
With the new deal, ABG plans to close several Barneys New York stores, but the company isn’t getting rid of the Barneys brand altogether; ABG is licensing Barneys’ brand to Saks Fifth Avenue, where Saks will launch a slew of Barneys shops inside Saks locations. For the famous Madison Ave location, ABG will transform the space into a “pop-up retail experience,” featuring boutiques as well as art installations and other forms of entertainment.
Earlier in August, Barneys filed for Chapter 11 bankruptcy as a result of high rent and lagging sales. Following the news of the sale, Barneys posted a photo that read “Barneys New York Forever” and the captioned “#2020.”
Early Friday morning, Barneys CEO Daniella Vitale stepped down from the company and released a company-wide email announcing her resignation.
“Today is my last day with this wonderful organization. As announced earlier on the call Authentic Brands Group will take control of the company today. Transition plans will be shared shortly,” she wrote, according to Business of Fashion. “I am deeply sorry for all you have been through in the past year. Please understand that we tried very hard to keep this out of court and to find a solution before filing.”