In Brief: Barneys buyout
This article was originally published in The Rose Sheet
Executive Summary
Barneys buyout: Hong Kong retailer Dickson Concepts to invest $205 mil. in cash and a $42 mil. note to be paid by certain Asian royalties into the prestige department store chain under a plan to bring New York City retailer Barneys out of bankruptcy. Dickson Concepts' was chosen by Barneys and the New York federal bankruptcy court's unsecured creditors committee to become the department store's recapitalization partner Aug. 3, the companies jointly announced. Barneys constituents will also receive 49% of equity of the reorganized entity. The specialty store chain noted that Dickson Concepts' bid "will yield a value acceptable to all of [Barneys'] constituents and provide them with substantial cash, as well as an opportunity to participate in the future growth of the company." The groups must final the agreement and file a motion to allow buyer protection to Dickson Concepts by Aug. 15. In its Chapter 11 filing submitted Jan. 10, Barneys reported $381.5 mil. in total assets and $361.4 mil. in total liabilities ("The Rose Sheet" Feb. 5, 1996, p. 35)...