After much speculation, Authentic Brands Group (ABG) announced that it will acquire Barney’s New York. The global brand development company first placed a bid for the fashion company in mid-October 2019.
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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. 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,” Jamie Salter, ABG’s founder, chairman and CEO said.
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.
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.
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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.
(Source: Fashion United)