American luxury department store Barneys New York Inc is said to be looking for options including a bankruptcy filing, reports Reuters citing people familiar with the development. It is understood that the store is finding it hard to survive amid high rents and changing consumer tastes and has roped in law firm Kirkland & Ellis LLP to prepare for a potential bankruptcy, which could be announced in the coming weeks, the report added.
Sources from the luxury destination popularly known for its high-end designer collection told Reuters that Barneys has not yet made a final decision on whether or not to seek bankruptcy protection, and is weighing other possible solutions for addressing high rents that are straining its business and filing for bankruptcy would be one option to deal with expensive leases.
“At Barneys New York, our customers remain our top priority and we are committed to providing them the excellent services, products, and experiences they have come to expect. We continue to work closely with all of our business partners to achieve the goals we’ve set together and maximize value. To that end, our board and management are actively evaluating opportunities to strengthen our balance sheet and ensure the sustainable, long-term growth and success of our business,” the report added quoting a statement from the company.
According to the company’s website, Barneys New York operates flagship stores in New York City, Beverly Hills, Chicago, Seattle, Boston, San Francisco, Las Vegas and along with a preeminent luxury online store, Barneys.com, as well as 16 other full price stores and warehouse stores across the United States.
FashionUnited has reached out to Barneys and will continue to update the story with more coverage soon.
Picture:Facebook/Barneys New York