Barneys New York has secured approximately $218 million in new financing from Brigade Capital Management and B. Riley Financial to facilitate a going concern sale process.

This new agreement replaces the previously announced $75 million agreement with affiliates of Hilco Global and the Gordon Brothers Group and will refinance all of Barneys New York’s existing secured indebtedness.

The company also received approvals from the U.S. Bankruptcy Court for the Southern District of New York for all “First Day” motions filed on August 6, 2019. The court granted Barneys New York interim approval to immediately access $75 million of the $218 million in new financing from Brigade Capital and B. Riley Financial, which, combined with operating cash flow, will help Barneys New York to meet its go-forward financial commitments and continue operations.

“We are pleased to partner with Brigade Capital and B. Riley Financial, whose substantial financial commitment will better support Barneys New York as we continue to offer a unique customer experience, strengthen our relationships with our vendors and conduct a sale process to position Barneys New York for the long-term,” said Daniella Vitale, CEO & president. “This significantly enhanced financing commitment demonstrates the belief of Brigade Capital and B. Riley Financial in the value of the Barneys New York brand and business.”

Brigade Capital, a global investment management firm, and B. Riley Financial, a diversified financial services company, bring deep retail sector expertise in the leveraged finance market.

“I would also like to thank Hilco Global and the Gordon Brothers Group for their interest and professionalism. The competition to provide Barneys New York with fresh capital – a substantial amount of which is being provided on a junior basis – reinforces our confidence in achieving a value enhancing transaction,” added Vitale.

Barneys New York will continue to provide excellent services, products and experiences for customers in five flagship locations: Madison Avenue, Downtown NYC, Beverly Hills, San Francisco and Copley Place in Boston, as well as two Barneys Warehouse locations, including Woodbury Common and Livermore. and will continue serving our customers without disruption.

Kirkland & Ellis is serving as the company’s legal advisor, Houlihan Lokey is serving as financial advisor, and M-III Partners is serving as its restructuring advisor.