RadioOnFire.com – It was announced on Tuesday (August 6) that luxury retailer Barneys is filing for Chapter 11 bankruptcy protection.
Barneys also announced that they will be closing 15 of their 22 stores, including locations in Chicago, Las Vegas and Seattle, as well as five small concept stores and seven Barneys Warehouse stores. The company’s five flagship locations in New York, Beverly Hills, San Francisco, and Boston will remain open, along with two Barneys Warehouse locations in Central Valley, New York, and Livermore, California.
Barneys CEO and president Daniella Vitale released a statement on the situation, which read, “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. 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 continued, “In response to these obstacles, the Barneys New York Board and management team have taken decisive action by entering into a court-supervised process, which will provide the Company the necessary tools to conduct a sale process, review our current leases and optimize our operations. While doing that we are receiving new capital to help support the business. Pursuing a sale under the Court’s supervision provides the quickest and most efficient means of maximizing value while ensuring we continue serving both new and loyal customers.”