Sam-Ben Avraham plans to submit another bid to buy Barneys New York, and potentially compete with the $271.4 million stalking-horse bid led by Authentic Brands Group and B. Riley Financial, according to sources familiar with the matter.
The Kith backer is expected to make his move this morning, ahead of a sale hearing scheduled for Thursday in New York bankruptcy court. Ben-Avraham had previously submitted a roughly $260 million bid to buy Barneys as a going concern that would keep at least five Barneys locations open, including its Madison Avenue and Beverly Hills flagships. Although he submitted that bid in time for a planned auction, it failed to make the cut as a qualifying bid, and the auction was canceled.
Details of his new potential bid were not immediately clear, but one source said Ben-Avraham has worked to improve his offer in part by firming up the financing on the deal, including equity commitments.
Representatives for Barneys and B. Riley could not immediately be reached for comment Wednesday morning.
On Wednesday, the official committee of unsecured creditors, which comprises vendors including Prada and Chloé, landlords, and an employees union, appeared to signal its support for a potential bid by Ben-Avraham that would promise to