Barneys New York store chain files for bankruptcy | Daily News

Barneys New York store chain files for bankruptcy

US luxury department store chain Barneys New York has filed for Chapter 11 bankruptcy and put itself on sale. The firm has faced soaring rents and was unsuccessful in its earlier attempts to find a buyer.

Barneys has secured US$ 75 mn (£61m) in new financing from Hilco Global and the Gordon Brothers Group to stay afloat. It will close stores in Chicago, Las Vegas and Seattle, along with five smaller concept stores and seven Barneys Warehouse locations. Barneys has faced a steep rise in rent at its Manhattan flagship store on Madison Avenue, New York, to US$30 mn from US$ 16 mn.

Chapter 11 postpones a US company’s obligations to its creditors, giving it time to reorganise its debts or sell parts of the business. Chief executive Daniella Vitale said: “Like many in our industry, Barneys New York’s financial position has been dramatically impacted by the challenging retail environment and rent structures that are excessively high relative to market demand.” BBC


 

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