Barneys New York, an icon of New York retail since it was founded in 1923, filed for bankruptcy early Tuesday morning.
Controlled by the Perry Capital hedge fund, Barney’s has secured $75 million in additional financing to use during its Chapter 11 proceedings but will be forced to close 15 of its 22 locations.
The retailer will maintain its five flagship locations; two in New York (Madison Avenue and Downtown NYC), two in California (Beverly Hills and San Francisco) and one in Boston (Copley Place).
Barneys, which previously filed for bankruptcy in 1996, nearly lost all of its earnings this year after rent at its flagship location on Madison Avenue jumped from roughly $16 million to about $30 million in January, CNBC reported.
Locations that will close include Barneys stores in Chicago, Las Vegas and Seattle as well as five small concept stores and seven Barneys Warehouse stores.
Barneys.com and BarneysWarehouse.com “will continue serving our customers without disruption,” according to the company.
“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,” company CEO Daniella Vitale said in a statement. “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.
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