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Barneys sold for $322M
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August 4, 1997: 8:02 a.m. ET
Hong Kong business will buy retailer to take it out of bankruptcy
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NEW YORK (CNNfn) - Barney's Inc. accepted an offer from Dickson Concepts (International) Inc. of Hong Kong to buy the upscale U.S. retailer and take it out of bankruptcy in a deal valued at $322 million, according to press reports Monday.
The agreement, which needs the approval of a U.S. Bankruptcy Court judge, would add another highbrow retailer to Hong Kong tycoon Dickson Poon's portfolio, the Wall Street Journal and New York Times reported.
The deal would allow the family-owned Barney's to extricate itself from bankruptcy and give Poon a vehicle into the lucrative U.S. retailing market, the newspapers said.
Under the agreement, Dickson Concepts will take control of 51 percent of Barney's, the Journal reported. Dickson will pay creditors $205 million in cash, 49 percent of the equity in Barney's, and a $42 million note.
Barney's filed for Chapter 11 bankruptcy protection in January 1996 after a failed expansion effort with their former partner, Isetan Company of Japan.
Bob and Gene Pressman, co-chief executives whose grandfather founded the business, will have active management roles in the new company.
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