Barneys New York’s fate may be sealed if investor Sam Ben-Avraham can’t come up with the funds to buy the retailer out of bankruptcy. Ben-Avraham, who has been promoting his purchase of Barneys on social media, reportedly has until Oct. 31 to make a deal for the retailer.

The bid to purchase Barneys by Ben-Avraham faltered on Thursday, paving the way for Authentic Brands to win the retailer at auction, sources told CNBC. Authentic Brands is looking to purchase the intellectual property of Barneys in a $271 million deal that could lead to store closures or liquidation of the company.

As part of the deal to purchase Barneys, Authentic Brands has been negotiating lease contracts with landlords with a focus on keeping the best-performing stores open, including the locations on Madison Avenue in New York and the store in Beverly Hills, California, sources told the news outlet.

“Barneys is continuing to work towards a value-maximizing going-concern transaction, including in relation to a potential transaction led by Sam Ben-Avraham and his group of financial, operational, and strategic partners, up to and including the October 31 sale hearing,” a Barneys spokesperson told CNBC in a statement.

Barneys, which currently operates five stores and employees about 2,000 workers. The company filed for Chapter 11 bankruptcy in August.

Barneys
Luxury retailer Barneys is paying a hefty settlement for racially profiling customers since at least 2012. Reuters
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