Barneys New York has filed for Chapter 11 bankruptcy protection and will close 15 of its 22 stores, the luxury retailer announced early Tuesday
Locations that will be shuttered include Barneys New York locations in Chicago, Las Vegas and Seattle, five small concept stores and seven Barneys Warehouse stores, the company statement said.
Five flagship locations are expected to stay open including, two New York locations (Madison Avenue and Downtown New York City), two in California (Beverly Hills and San Francisco) and the Boston store at Copley Place USA Today reports.
Barneys New York (the “Company”), the luxury specialty retailer, today announced that it has secured $75 million in new capital to facilitate a going concern sale process. In connection with the sale process, Barneys New York has voluntarily filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. Barneys New York intends to use the court-supervised process to review store leases to best optimize the Company’s operations and consider all value-enhancing transactions.
“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, Chief Executive Officer & President. “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. 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 maximizing value while ensuring we continue serving both new and loyal customers.”
“I would like to express my deep appreciation and profound gratitude for the continued support of our employees, vendor community and customers – truly the lifeblood of Barneys New York. Our decades-long partnerships and relationships will continue for many years to come. We are unwavering in our commitment to executing our forward thinking vision on what retail should look like today.”