Following tough couple of months, Barneys New York has filed for Chapter 11 bankruptcy protection.
This was announced by the retailer yesterday (6 August).
The statement released by the company said that Barneys will soon be shutting 15 of its 22 stores including Barneys New York locations in Chicago, Las Vegas and Seattle.
Additionally, 5 small concept stores and 7 Barneys Warehouse stores will also be closed.
Only 5 flagship locations will continue business, including 2 locations in New York (Madison Avenue and Downtown New York City), 2 in California (Beverly Hills and San Francisco) and the Boston store at Copley Place.
“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 CEO and President, in the statement.
She further added “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.”
The statement said Barneys procured “US $ 75 million in new capital to facilitate a going concern sale process” and “voluntarily filed for reorganisation under Chapter 11″ in the United States Bankruptcy Court for the Southern District of New York.
“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,” Vitale said in the statement.
The company said it “intends to use the court-supervised process to review store leases to best optimise” its operations.