Exclusive: Barney's New York explores options that include sources of bankruptcy
FILE PHOTO: People go to Barney's New York store in New York on October 24, 2013. REUTERS / Eric Thayer
13. July 2019 [19659004] By Jessica DiNapoli and Mike Spector
NEW YORK (Reuters) – Barney's New York Inc, the US luxury store operator, explores options that include bankruptcy proceedings as it fights for high rent and changes consumer tastes, people who are familiar with The case tells about Saturday.
The nearly 1[ads1]00-year-old dealer, known for his high-end designer collection, is working with the Kirkland & Ellis LLP law firm to prepare for a potential bankruptcy proceedings that may come in the coming weeks, One of the sources said.
Barneys has not yet made a final decision to seek bankruptcy protection or not, and weighs other possible solutions to resolve high leases that disrupt their business. The sources notified. Filing for bankruptcy would be an option for dealing with expensive leases, the sources said.
The dealer's flagship variant on Madison Avenue in Manhattan has weighed the economy, one of the sources said. The sources asked are not identified because the deliberations are confidential.
"In Barney's New York, our customers remain top priority and we are committed to providing them with the good services, products, and experiences they have come to expect," the company said in a statement.
"We continue to work closely with all our partners to achieve the goals we have put together and maximize the value. In this regard, the Board and management actively consider opportunities to strengthen the balance sheet and ensure sustainable, long-term growth and success in our business
Should there be a bankruptcy file, Barneys would be one of the most professional victims of the downturn in retail, emphasizing where even luxury heaters are not immune to fierce competition with ecommerce companies such as Amazon.com Inc
Sears Holdings Inc, Toys "R" Us Inc and Gymboree Group Inc have also filed for bankruptcy for about the past year.
In addition to its exclusive department stores, Barney's Barney's Warehouse operates outlets, as well as Fred's restaurants. has Barney's 28 sites, according to its website, its most prominent places are Beverly Hills, California, Chicago, Seattle, Boston, San Francisco, and Las Vegas.
B Arneys got its name in the 1930s by placing women dressed in barrels outside the beer halls in New York City, where they would release match books that advertised the store, according to the reseller's website.
The store, now known for exclusive clothing made by designers like Burberry Group Plc
(Reporting of Jessica DiNapoli and Mike Spector in New York, editing of Jonathan Oatis)
