An iconic institution, Barneys New York has officially filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code as of Tuesday morning, August 6.
With the announcement of this news, the luxury specialty retailer also noted that they will be closing 15 of their 22 stores including Chicago, Las Vegas, and Seattle locations in addition to 5 smaller concept stores and seven Barneys Warehouse locations. Moving forward there will be 5 flagships locations:
- Madison Avenue
- Downtown NYC
- Beverly Hills
- San Francisco
- Copley Place in Boston
In a statement released by Danielle Vitale, Chief Executive Officer & President, she says: “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 optimize our operations.”
in the meantime, Barneys New York has raised $75 million in new capital to facilitate a sale process. In addition to the handful of stores remaining open, Barneys will “continue serving [their] customers without disruption” through their online stores Barneys.com and BarneysWarehouse.com.
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Also published on Medium.