Luxury retail store Barneys had its deadline to find a buyer extended on Thursday.
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The company, currently in the middle of bankruptcy proceedings after filing for Chapter 11 protection in August, will now have until Oct.11 to locate a purchaser. At a hearing, Judge Cecelia Morris allowed Barneys more time in the process after the store's lenders, B. Riley Financial and Brigade Capital Management, gave their approval.
A group of fashion industry bigwigs, led by Sam Ben-Avraham, are planning a $220 million offer to buy Barneys, The Wall Street Journal reported.
Barney's financial troubles stem in large part from the landlord of its flagship New York store - Ashkenazy Acquisition (who also owns its Beverly Hills store) -- nearly doubling its rent to almost $28 million this year. Also, brick-and-mortar retail stores face increasingly difficult commercial headwinds, as more consumers are buying products online.
“We are in advanced negotiations with a potential purchaser and intend to reach an agreement by next Friday,” a Barneys spokeswoman said in a statement.