NEW YORK (Reuters) – US Luxury Warehouse Operator Barney's New York Inc investigates options that include bankruptcy proceedings, as it fights for high rental rates and changes consumer tastes, telling people who are familiar with the case Saturday.
FILE PHOTO: People walk past a Barney's New York store in New York on October 24, 2013. REUTERS / Eric Thayer
The nearly 100-year-old dealer, known for his high-end designer collection, works with Kirkland & law firm Ellis LLP 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 heat store 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.
"At 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 of our partners to achieve the goals we have put together and maximize the value. To this end, the board and management actively consider the opportunities to strengthen the balance and ensure sustainable, long-term growth and success in our business
Should there be a bankruptcy file, Barneys would be one of the most profiled victims of the downturn in retail, emphasizing where even luxury heaters are not immune to fierce competition with e-commerce companies such as Amazon.com Inc (). AMZN.O .
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 and Fred's restaurants, all in all, Barney's 28 sites, according to its website, are Beverly Hills, California, Chicago, Seattle, Boston, San Francisco, and Las. Vegas
Barneys got its name in the 1930s by placing women dressed in barrels outside of New York City's beer halls, 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 such as Burberry Group Plc ( BRBY.L ), began as a target for middle-class families. It turned into a luxury fashion in the 1960s.
Reporting by Jessica DiNapoli and Mike Spector in New York; editing by Jonathan Oatis