- The deal as it stands could lead to the shuttering of Barneys' remaining stores.
- "Over the past several months, we have worked diligently with the court, our lenders and creditors to maximize the value of Barneys in this sale process, and we continue to work with all relevant parties towards the best solution for Barneys' employees, designers and vendors, and customers," a Barneys spokesperson told Business Insider.
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Bankruptcy judge approves Barneys' sale in a move that will likely close all of the luxury chain's remaining department stores
Bankruptcy judge Cecelia G. Morris ruled in favor of a deal for Authentic Brands Group to purchase Barneys on Thursday, the Wall Street Journal reported .
Barneys could close all of its remaining stores under a deal approved by bankruptcy judge Cecelia G. Morris on Thursday, the Wall Street Journal reports .
Under the ruling, Authentic Brands Group will assume ownership of the luxury department store, following several weeks of courting potential bidders. The deal as it stands will likely call for the closure of Barneys' remaining locations, and the brand name would be slated to be licensed to Saks Fifth Avenue.
The sale officially closes on Friday, leaving a small window for another party to outbid ABG.
A spokesperson for Barneys confirmed the ruling to Business Insider on Thursday, noting that the company is still waiting to see if any additional bidders arise before the deal official closes.
"Earlier today, the court approved the sale of Barneys New York to Authentic Brands Group, in partnership with Saks," the spokesperson said. "Importantly, the sale has not concluded and other bidders can still come forward before tomorrow's closing. Over the past several months, we have worked diligently with the court, our lenders and creditors to maximize the value of Barneys in this sale process, and we continue to work with all relevant parties towards the best solution for Barneys' employees, designers and vendors, and customers."
"This is a sad day," Morris said at the hearing, according to the Wall Street Journal. The possible shuttering of the remaining stores may lead to layoffs for more than 2,000 employees.
"There was a palpable sense of loss, even more so than in a typical bankruptcy case, and after the judge left the room the stunned silence gave way to quiet sobs," The Fashion Law Institute, a nonprofit organization based at Fordham Law School, tweeted on Thursday.
A representative for ABG were not immediately available for request for comment.
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