Saks Holdings, Isetan Withdraw Request for Barney's Fiscal Data
May 05, 2011
NEW YORK -- Saks Holdings Inc. and Isetan Co. withdrew a bankruptcy-court request that would have sped up their efforts to develop a reorganization plan for Barney's Inc., which has been operating under Chapter 11 since January. Saks and Isetan were seeking access to closely held Barney's financial statements. They previously announced a pact to make a joint bid for Barney's that would satisfy creditors with an undetermined amount of stock in New York-based Saks, the parent of Saks Fifth Avenue. Tokyo-based Isetan is Barry's adversary in the bankruptcy-law proceedings and owns the retailer's three biggest stores. Saks and Isetan dropped their request because they haven't been able to win support from certain major unsecured creditors, people close to the situation said. Although Barney's management still has the exclusive right to file a reorganization plan, Saks and Isetan had hoped to pre-empt Barney's with a competing plan approved in advance by creditors. But some creditors, including Chase Manhattan Corp., don't want to sign on to any plan so soon, people close to the case said, because they don't want to discourage other potential bidders. A Chase spokesman declined to comment. Isetan attorney Bower Brice said Saks and Isetan haven't abandoned their efforts. ``We're trying to get the best value for the company for everyone concerned,'' he said. ``We don't want to be hostile. We'll honor the process.'' A Saks spokeswoman declined to comment on the matter, as did a spokeswoman for Barney's.
