Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Saks Fifth Avenue plans expansion into bankrupt Barneys shop in Los Angeles

Stock MarketsFeb 14, 2020 03:25PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

By Melissa Fares and Jessica DiNapoli

(Reuters) - Luxury department store operator Saks Fifth Avenue, owned by Canada's Hudson's Bay Co (TO:HBC), is expanding into bankrupt fashion chain Barneys' Beverly Hills shop, people familiar with the matter said on Friday.

The move comes ahead of a shareholder vote later this month to approve Hudson's Bay Executive Chairman Richard Baker's C$2 billion ($1.51 billion) bid to take the retailer private. As a private company, Hudson's Bay will be able to invest in its business without facing scrutiny from public shareholders.

The company's shares fell by almost one-half in the year before Baker announced his bid, but have since risen more than 40%.

Barneys filed for bankruptcy last year due in part to rent hikes. Saks will use some form of the Barneys brand at the Beverly Hills store, according to people familiar with its plans.

The expansion of Saks into the Barneys' location will give the upscale department store three stores on Wilshire Boulevard: its men store, a department store and the third spot in Barneys. It is not yet clear if Hudson's Bay will keep all three locations, the sources said.

Hudson's Bay currently operates 41 Saks Fifth Avenue stores and 114 Saks Off 5th discount locations.

Brand development company Authentic Brands Group LLC bought the Barneys brand and other intellectual property out of bankruptcy last year for about $271 million. Reuters reported that Authentic Brands plans to license the Barneys brand to Saks, setting up plans to open shops in the department store's locations across the United States and Canada.

In a government notice this week, Barneys said it was permanently closing its flagship store on Manhattan's Madison Avenue and its outlet at the Woodbury Common Premium Outlets in Central Valley, New York. It filed a similar notice for its California shops in San Francisco and Beverly Hills.

Both Hudson's Bay and Authentic Brands declined to comment on the Los Angeles store move.

Saks Fifth Avenue plans expansion into bankrupt Barneys shop in Los Angeles
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email