The Courtroom Drama Continues in Barneys New York’s Bankruptcy Case

The saga over the future of Barneys New York is coming to an end. Judge Cecelia Morris approved a sale to Authentic Brands Group and by B. Riley in New York’s bankruptcy court today. Since placing a stalking horse bid for the retailer of around $271 million on October 16, the group had expressed intentions to downsize the business, liquidate current merchandise, and license the Barneys New York name to Saks Fifth Avenue.

While the Barneys legacy may still live on at Saks, much of the fashion community had rallied around the investor Sam Ben-Avraham. Not only had Ben-Avraham received over 20,000 signatures on a petition to “Save Barneys,” but many of the store’s creditors—who in total are owed upwards of $20 million—wrote a formal letter to the court endorsing Ben-Avraham’s bid as a means to maintain jobs, according to Bloomberg.

The problem: Ben-Avraham never seems to have submitted a qualifying bid, as per court transcripts. Another potential bidder, David Jackson, is also said not to have submitted a bid in time; Jackson was formerly the CEO of Istithmar World, which owned Barneys from 2007 to 2012.

So what’s next for one of New York’s most beloved stores? Should the sale to ABG and B. Riley be confirmed tomorrow in court, the liquidation of Barneys’s assets, dismissal of employees, and closing of stores could begin as soon as November 2. Ben-Avraham and Jackson have until court adjourns tomorrow morning to submit viable counter bids—neither have responded to requests for comment. When leaving the courtroom, Judge Morris is reported to have said, “This is a sad day.”

Update: Barneys New York has provided the following statement about today’s court hearing: “Earlier today, the court approved the sale of Barneys New York to Authentic Brands Group, in partnership with Saks. 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.”

Originally Appeared on Vogue