- Robyn Turk
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After much speculation, Authentic Brands Group (ABG)
announced on Thursday evening that it will acquire Barney’s New York.
The global brand development company first placed a bid for the
fashion company last week.
ABG will acquire the Barneys New York label as well as its
associated intellectual property, which includes Barneys,
FiveSeventyFive, Connor New York, Freds, and Freds Foods, The High End
and The Drop.
The purchase of Barneys enhances ABG’s luxury footprint as the
company works to establish itself as a global leader in contemporary
fashion.
“We are thrilled that our offer for Barneys has been accepted,”
Jamie Salter, ABG’s founder, chairman and CEO said in a statement
emailed to FashionUnited. “Barneys is one of the most recognizable
and iconic names in luxury lifestyle, and we see an incredible
opportunity to extend the brand’s equity in current and new markets
around the world. We are also excited to join forces with Saks Fifth
Avenue, the preeminent luxury retailer that continues to bring
innovation and fashion authority to the industry.”
ABG will assume all of Barneys’ brand marketing, business
development and brand management functions as well as managing
licensing agreements. ABG has already announced that it will maintain
Barney’s’ current licensing agreement with Seven & i Holdings while
selectively licensing the brand around the world.
Authentic Brands Group to partner Barneys with Saks
ABG has already confirmed that it will make Saks Fifth
Avenue (Saks) the official retail partner for Barneys in the U.S. and
Canada. Owned by Hudson’s Bay Co., Saks has historically been a
competitor to Barney’s and ABG recognizes the company as a leader in
luxury retail.
The company noted in a statement that it believes the licensing
agreement between Saks and Barneys will build upon the latter’s legacy
and “evolve it for the future.”
“As we explore opportunities for the brand as part of Saks Fifth
Avenue, we are working to best understand what Barneys’ customers love
about the retailer as we evolve it into a new interpretation that is
relevant for today’s luxury consumer,” explained Marc Metrick, Saks
Fifth Avenue president.
The sale of Barneys New York is still subject to final approval by
the United States Bankruptcy Court. A hearing is scheduled for October
31, and the transaction is expected to close by November 1.
Photo: Barneys New York. Photo credits: PhillipPessar, Flickr
