Another one from the world of fashion retailers to file for bankruptcy! The luxury fashion retailer Barneys may be the latest in the fashion industry to be on the cusp of a bankruptcy.
This comes following store’s struggle with high rents and shoppers going online.
Barneys may have tapped law firm Kirkland & Ellis LLP and is weighing a potential bankruptcy filing among other options that could occur in the coming weeks.
The move is largely to address expensive leases, especially its flagship location on Madison Avenue in Manhattan, that are hampering the retailer’s business. The advisers are exploring a range of options that include bankruptcy, as well as ones that would help it avoid a bankruptcy filing, such as a sale or securing further financing.
Other retailers with Manhattan flagship locations have faced similar circumstances and have ultimately shut those stores. Ralph Lauren closed its Fifth Avenue store in 2017, while Lord & Taylor shut down its Fifth Avenue flagship in January this year.
If it does file for bankruptcy protection, Barneys would follow a long line of retailers, especially mall brands, to succumb to the changing retail landscape.
A spokesperson for Barneys said, “At Barneys New York, our customers remain our top priority and we are committed to providing them the excellent services, products, and experiences they have come to expect.” The spokesperson added, “Our Board and management are actively evaluating opportunities to strengthen our balance sheet and ensure the sustainable, long-term growth and success of our business.”
