Ex Barneys owner seeks more time to make an offer for the luxury retailer
Barneys was about to get sold on October 23, 2019. However, an ex-owner of the multi-storied retailer pleaded for more time at the last minute to come up with a better offer. Chief Executive Officer, David Jackson of the Dubai firm that purchased Barneys back in 2007 with $942 million was doing everything he could and collect all the money to be the new owner of the luxury retailer. However, David, the investment banker could not come up with enough bidding amount by 5 p.m. when the bid was about to held. Therefore, as a final option, he had to request extra time to bankruptcy advisers.
David had been the previous chief of Istithmar World. He commented that although they had the financial support to bid on the company, they waited to submit the official bid. David still has a small stake at Barneys. He informed that a single new bid had been submitted on that day. The amount is of $260 million, but anyway it is way less than $271.4 million which is the stalking horse bid. This amount is from licensing company Authentic Brands Group and they have received permission from the court for supervising the Barneys’ bankruptcy case.
Sources informed that the $260 million bid was received from Sam Ben-Avraham, the executive of the trade show. A source related to the case said that advisers of the Barneys might not offer extra time to Yale and Princeton passed out David Jackson. If that happens, ABG, the owner of Frederick’s and Juicy Couture at Hollywood would still be leading the bid. The reliable source said that extra time might not be provided since that is not fair to all bidders who have worked so hard to arrange the amount. Sam’s bidding amount on the other hand was less by $30 million.