(NEW YORK) — Famed luxury retailer Barneys New York is expected to be sold for $270 million following a federal bankruptcy court decision Thursday.No other offer materialized by the time Judge Cecilia Morris approved the sale of Barneys to Authentic Brands Group, which had signaled it would close stores, including the Madison Avenue flagship, and license the name to Saks and other rivals.Inventory would be turned over to a liquidation firm, meaning a potential glut of luxury goods for sale at deep discounts just before the holidays.The bid schedule formally closes Friday so Barneys said it’s theoretically possible a new bid could come between now and then.Barneys began as a discount store in 1923 at 17th Street and 7th Ave in Manhattan before it became a luxury retailer that introduced designers like Giorgio Armani to the United States.Barneys filed for bankruptcy in August after a significant rent increase at its flagship store on 61st Street and Madison Ave.Investor Sam Ben-Avraham started an online campaign, “Save Barneys,” hoping to submit a bid that would keep stores open and employees working. None materialized.
“Earlier today, the court approved the sale of Barneys New York to Authentic Brands Group, in partnership with Saks,” Barneys said in a statement Thursday.The statement continued: “Importantly, the sale has not concluded and other bidders can still come forward before tomorrow’s closing. Over the past several months, we have worked diligently with the court, our lenders and creditors to maximize the value of Barneys in this sale process, and we continue to work with all relevant parties towards the best solution for Barneys’ employees, designers and vendors, and customers.”Copyright © 2019, ABC Audio. All rights reserved.