Is An Israeli Fashion Mogul About To Save Barneys’ From Liquidation?

Sam Ben Avraham considers buying Barneys Image by Getty Images

By Michael Kaminer October 7, 2019

An Israeli-born fashion mogul is emerging as the white knight who may rescue beleaguered Barneys New York from liquidation.

Sam Ben-Avraham, who founded white-hot streetwear label Kith and now runs the fashion-trade expos like PROJECT and Capsule, is preparing to pony up about $220 million for Barneys, according to the Wall Street Journal. Ben-Avraham “is assembling a consortium of retail veterans and brand investors to help fund the bid,” the Journal reported.

A Jewish thread runs through Barneys’ history. Launched by Barney Pressman in 1923 as a discount store, the brand grew to a luxury behemoth with stores and outlets nationwide. In a shocking turn, the company filed for bankruptcy protection in August. Its current woes stem partly from disputes with its Madison Avenue landlord in Manhattan — Ben Ashkenazy of Ashkenazy Acquisition Corp., whose portfolio reportedly includes more than 100 New York City buildings.

As the Forward reported in August, the developer’s net worth has been estimated at about $7 billion; he made headlines in 2016 for hiring Drake to perform at his daughter Gigi’s bat-mitzvah.

Ben-Avraham, the potential Barneys’ suitor, keeps a relatively low profile, but his roots emerge in a few online stories. His LinkedIn profile depicts him at the Western Wall. And Ben-Avraham supported an exhibition last month of artist Jordan Nassar at Tel Aviv’s Center for Contemporary Art.

The offer led by Ben-Avraham “is the furthest along and it contemplates an asset-based loan and cash to keep Barneys operating,” according to Bloomberg.

A message from our CEO & publisher Rachel Fishman Feddersen

I hope you appreciated this article. Before you go, I’d like to ask you to please support the Forward’s award-winning, nonprofit journalism during this critical time.

The coming year promises to be filled with more complex and historic developments. We are entering an era where independent, fact-based Jewish journalism will be more important than ever. We need to be ready for whatever 2025 will bring, and with your help, we can be.

We’ve set a goal to raise $260,000 by December 31. That’s an ambitious goal, but one that will give us the resources we need to invest in the high quality news, opinion, analysis and cultural coverage that isn’t available anywhere else.

If you feel inspired to make an impact, now is the time to give something back. Join us as a member at your most generous level.

— Rachel Fishman Feddersen, Publisher and CEO