U.S. luxury department-store chain Barneys New York Inc has reached an agreement to sell its assets to brand developer Authentic Brands Group and investment bank B. Riley Financial Inc, according to a filing on Wednesday.
The deal comes as a ‘stalking horse purchase agreement’, with the purchase price estimated to be about $271.4 million in cash, the filing in the U.S. Bankruptcy Court in Poughkeepsie showed.
A “stalking horse” bid is used as a starting bid or minimally accepted offer that other interested bidders must surpass if they want to buy the company.
Reuters reported on Monday that Barneys, which filed for bankruptcy protection in August, was nearing a deal with Authentic Brands that could lead to Barneys shops opening in Saks Fifth Avenue stores.
Source: Reuters.com