BARNEYS CONFIRMS RECEIPT OF DICKSON PROPOSAL
NEW YORK--(BUSINESS WIRE)--Feb. 28, 1997--Barney's, Inc. today confirmed that it has received a proposal from Dickson Concepts (International) Limited to invest in the company as part of Barneys recapitalization under a company-sponsored plan of reorganization. However, the company said that it has not yet had the opportunity to review the proposal with its advisors.
According to a spokesperson for the company, "Barneys has had numerous discussions with Dickson and its various representatives regarding elements of a potential investment proposal. However, the company did not receive Dickson's formal proposal until early this morning, and has not yet had the opportunity to review it with its financial and legal advisors."
The Dickson proposal has been anticipated in conjunction with the completion of Dickson's due diligence process, for which Barneys received Court approval to reimburse Dickson Concepts for up to $1 million of expenses.
Barneys has been involved in discussions with potential investors as part of its efforts to develop a plan of reorganization in an effort to maximize the value of its estate. Barneys currently retains the exclusive right to file or advance a plan of reorganization.
Barney's, Inc. and certain of its subsidiaries voluntarily filed a petition of reorganization under Chapter 11 on January 10, 1996. The company employs approximately 1,950 people in 13 stores in New York City and Manhasset, New York; Beverly Hills and Costa Mesa, California; Chicago, Illinois; Dallas and Houston, Texas; Troy, Michigan; Chesnut Hills, Massachusetts; Westport, Connecticut; and Seattle, Washington; nine outlet stores, corporate offices in New York and a distribution center in Lyndhurst, New Jersey.