A $271 million bid for the bankrupt luxury department store Barneys New York by brand developer Authentic Brands Group has been challenged by Israeli businessman Samuel Ben-Avraham who announced that he had put in a contending offer for the company.
Barneys New York had applied for bankruptcy in August and since then has been seeking rival bids from others that could beat the bid for the company made by Authentic Brands. The last date for filing of competitive bids ended on Wednesday.
Reports quoting sources with knowledge of the matter said that whether the rivaling bid from Samuel Ben-Avraham will be considered to be a so-called qualified bid by Barneys is not yet clear. A qualified bid is one that is able to meet certain specific criteria and thresholds that are mandated for consideration in a bankruptcy court auction – the date for which has been set for next Monday.
According to a report published by Reuters, his bid is being backed by a line of investors, Ben-Avraham said, and added that there still remains some work to be done before the auction takes place. A social media campaign was launched by the entrepreneur with images from TV shows “Sex and the City” and “Curb Your Enthusiasm” which was also a part of his proposal.
No comments from available in the media from Barneys and Authentic Brands.
According to the LinkedIn profile Ben-Avraham, his business interests include trade show companies and he is also invested in the fashion label Kith. Additional details on his bid could not immediately be determined.
Ben-Avraham’s offer was first reported by Women’s Wear Daily. None of the reports carried the names or identities of the of the sources claiming that they were not allowed to speak about the matter in public.
Establishment of Barneys shops in the existing Saks Fifth Avenue stores was called for in the Authentic Brand’s offer. A handful of its brick-and-mortar outposts would also remain open, depending on negotiations with landlords, Reuters reported.
(Adapted from CNBC.com)