© Reuters. Men and women stroll by a Barneys New York retail retail outlet in New York
By Jessica DiNapoli and Mike Spector
NEW YORK (Reuters) – U.S. luxurious section shop operator Barneys New York Inc is discovering options that include things like a personal bankruptcy filing, as it struggles with substantial rents and changing shopper preferences, people today familiar with the issue reported on Saturday.
The practically 100-year-aged retailer, identified for its substantial-stop designer collection, is operating with law organization Kirkland & Ellis LLP to put together for a probable personal bankruptcy filing that could come in the coming months, one of the sources reported.
Barneys has not but produced a remaining selection on no matter whether or not to look for individual bankruptcy safety, and is weighing other feasible remedies for addressing substantial rents that are straining its organization, the resources cautioned. Submitting for bankruptcy would be a person choice to offer with expensive leases, the resources stated.
The retailer’s flagship department retail store on Madison Avenue in Manhattan has weighed on its finances, just one of the resources explained. The resources requested not be discovered for the reason that the deliberations are confidential.
“At Barneys New York, our clients continue being our prime precedence and we are fully commited to furnishing them the outstanding products and services, merchandise, and encounters they have occur to be expecting,” the corporation mentioned in a statement.
“We continue to do the job intently with all of our business enterprise associates to reach the goals we’ve set alongside one another and improve worth. To that conclusion, our board and administration are actively evaluating prospects to bolster our harmony sheet and make certain the sustainable, lengthy-expression progress and good results of our organization,” the business included.
Really should it file for personal bankruptcy, Barneys would be a person of the most higher-profile victims of the downturn in retail, and underscore how even luxurious section stores are not immune from fierce competition with e-commerce firms these as Amazon.com Inc (NASDAQ:).
Sears Holdings Inc, Toys “R” Us Inc and Gymboree Group Inc have also filed for individual bankruptcy in about the previous year.
In addition to its upscale section retailers, Barneys operates Barneys Warehouse shops, as perfectly as Freds places to eat. In all, Barneys has 28 locations, according to its web page. Its most popular areas involve Beverly Hills, California Chicago Seattle Boston San Francisco and Las Vegas.
Barneys made its title in the 1930s by placing females dressed in barrels outdoors beer halls in New York City, the place they would hand out matchbooks advertising and marketing the retail store, in accordance to the retailer’s internet site.
The retailer, now recognized for exceptional clothing manufactured by designers this sort of as Burberry Group (LON:) Plc, commenced as a destination for center-course family members. It transitioned to luxurious fashion in the 1960s.
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