With bidding procedures approved and deadlines looming on the horizon, Barneys New York is still looking for a buyer to bail it out of bankruptcy–but it won’t be Farfetch Limited.
Despite rumors that the online luxury platform was interested, a statement from Farfetch on Tuesday said, “The story is incorrect–Farfetch is not acquiring Barneys New York.”
The London-based retailer issued the statement in response to a story in the New York Post saying it intended to acquire the bankrupt New York-based luxury department store. Farfetch has been on the move on the M&A front recently, having acquired Off White licensee New Guards Group for $675 million earlier this month. That deal gave the company a greater push into the now popular streetwear market. Before that, Farfetch completed its acquisition of Stadium Goods for $250 million earlier this year, a move that gives it a stronger presence in the premier sneaker and streetwear marketplace. However, the day Farfetch disclosed its New Guards acquisition, the company also reported second-quarter losses after the equity markets closed the day’s trading session. Investors sent shares tumbling 40 percent in after-hours trading, and it couldn’t be determined whether that was in reaction to the New Guards deal or the fact that Farfetch posted a wider than expected loss for the quarter.
Meanwhile, according to the bidding procedures approved last week, potential buyers for Barneys’ assets have until Oct. 22 at 5:00 p.m. to submit their bids. Barneys has until Oct. 20 to select a so-called stalking horse bidder, which would help set the baseline for all other bids for its assets. An auction date is set for Oct. 24. If only one qualified bid is received, court documents indicate that bid would become the “winning bid.”
Barneys filed for Chapter 11 bankruptcy court protection on Aug. 6 in a Manhattan bankruptcy court sitting in Poughkeepsie. The Honorable Cecelia G. Morris, chief U.S. bankruptcy judge for Manhattan, has oversight of the case.