The hood’s Bergdorf Goodman Barneys New York has officially filed for Chapter 11 bankruptcy protection! Arranged on August 6, the Chapter 11 filing allows Barneys to stay open while it works out a plan to rev up the business and pay off its debts.
According to Business of Fashion, the luxury department store has been struggling with high rent and changing consumer tastes. Below is Barneys’ official statement regarding its surprising move:
“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. 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.”
Due to the bankruptcy, Barneys New York is closing 15 of its 22 brick-and-mortar shops, which includes their locations in Chicago, Las Vegas, and Seattle branches. Furthermore, 7 of the company’s 9 Barneys Warehouse stores and 5 concept stores will also be shut down (no Skepta). Fortunately, the luxury retailer will keep 5 flagship locations in New York, San Francisco, Los Angeles, and Boston. My online shopping heads are in luck because Barneys online stores, Barneys.com and BarneysWarehouse.com, will also remain in business.
What was the first piece you ever copped at Barneys?