Barneys had filed for voluntary bankruptcy protection in New York today. The bankruptcy filing is part of a larger restructuring of the company that includes $75 million (approx Rs 5.3 billion) in funding to keep operations going as the retailer looks for a buyer. In addition, Barneys will close 15 of its 22 stores, including Chicago, Las Vegas, and Seattle, and all of its outlets except Woodbury Commons and Livermore.
“For more than 90 years, Barneys New York has been an iconic luxury specialty retailer, renowned for its edit, strong point of view, creativity and representation of the world’s best designers and brands,” said Daniella Vitale, Barneys’s CEO and president in a release. “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. In response to these obstacles, the Barneys New York Board and management team have taken decisive action by entering into a court-supervised process, which will provide the company the necessary tools to conduct a sale process, review our current leases and optimise our operations. While doing that we are receiving new capital to help support the business. Pursuing a sale under the court’s supervision provides the quickest and most efficient means of maximising value while ensuring we continue serving both new and loyal customers.”