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Barneys Seeks Buyer in Chapter 11 Filing; Will Close Most Stores
Luxury retailer Barneys New York said Tuesday it had filed for Chapter 11 reorganization at U.S. Bankruptcy Court in Manhattan. It will close most of its brick-and-mortar stores, although flagship locations in Manhattan, Beverly Hills, San Francisco and Boston will remain open.
“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,” said CEO Daniella Vitale.
A bankruptcy filing, she added, will provide the 96-year-old retailer “the necessary tools to conduct a sale process, review our current leases and optimize our operations.”
The company, currently controlled by hedge fund Perry Capital, said it has secured $75 million in new capital to pay bills while seeking a buyer. Founded in New York by Barney Pressman as a discount retailer, Barneys shifted to luxury goods in the 1960s.
Barneys wasn’t the only retailer that announced store closures on Tuesday. In an SEC filing, Walgreens Boots Alliance said it would shutter 200 locations; the timetable for the closures wasn’t clear.
Pictured: The flagship Barneys store at 660 Madison Ave.
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