By  on January 22, 2020

The months leading up to a retailer’s bankruptcy filing can be a scramble of payments hastily made to some and withheld from others, as many vendors insist on getting paid quickly if they’re shipping at all. But those payments risk getting clawed back down the line — and in the case of Barneys New York’s bankruptcy, a joint venture linked to its lender is now seeking to collect.   

When Barneys sold its assets in a $271.4 million sale to Authentic Brands Group, which teamed with lender B. Riley Financial Inc. on the deal, the agreement included a provision for something called “avoidance actions,” which refers to lawsuits that can be filed — usually either by the company in bankruptcy or a trustee — against creditors who got paid by the company before its bankruptcy filing. 

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