Saks, Isetan Bid to Buy Barney’s

Saks Holdings Inc. and Isetan Co. said they are bidding to buy Barney’s Inc. for $290 million. Barney’s, which has been in Bankruptcy Court since January 1996, has been trying to attract higher offers since Dickson Concepts International Ltd. of Hong Kong bid $240 million in February. That offer was rejected by Barney’s creditors March 3. Winning Barney’s would be a boon for Saks because of the cachet tied to the Barney’s name and its 13 department stores that sell trendy, high-priced clothing. New York-based Saks, which operates the Saks Fifth Avenue chain of luxury department stores, first expressed interest in joining with Isetan to make a bid to buy Barney’s last summer. Neiman Marcus Group has said it might also bid for the retailer. Under the bid, Saks would acquire all of the stock of the closely held company or substantially all of the assets of Barney’s debtors. While the offer is higher than Dickson’s, it’s still lower than the $360 million in trade claims pending in proceedings.