Barneys Gets Letters of Interest From Potential Buyers

NEW YORK, United States — Five potential buyers have sent letters expressing interest in all or part of Barneys New York Inc. as the bankrupt luxury retailer tries to sell assets and avoid liquidation, according to people with knowledge of the matter.

Two of the would-be suitors would want all of the assets, while others are interested in just parts of Barneys, the people said, asking not to be identified discussing the confidential process. At least one potential bidder is an investment firm with previous holdings in the retail industry, one person said.

Other parties have also indicated they will bid in the bankruptcy auction later this month, but didn’t want to submit letters that could become public before then, the people said. They didn’t identify the bidders.

A representative for Barneys declined to comment.

The upscale clothing retailer filed for Chapter 11 last month with plans to shutter most of its stores after getting squeezed by rising rents and fewer visitors. Its management seeks to sell a slimmed-down business and negotiate with its landlords through the court process. The company said when it filed that it had secured $218 million in financing and will continue to operate until it finds a buyer.

Barneys was up against a deadline under an agreement with its bankruptcy lenders to receive initial letters of interest by September 25. The deadline for bidders to submit formal offers for the bankrupt retailer’s assets as part of the auction process is set for October 24 with an auction no later than October 29, according to court documents.

Barneys is working with law firm Kirkland & Ellis LLP, investment bank Houlihan Lokey Inc. and M-III Advisory Partners LP through its bankruptcy proceeding.

The case is Barneys New York Inc., 19-36300-cgm, US Bankruptcy Court for the Southern District of New York (Poughkeepsie).

By Katherine Doherty; editors: Rick Green and Dawn McCarty.