Barneys has gone bankrupt.
The luxury retailer has officially filed for bankruptcy due to decreased sales, and will be closing down 15 stores as part of a reorganization effort.
“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," Barneys CEO and President Daniella Vitale said. "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.”
Barneys will continue serving customers at their five flagship locations, including on Madison Avenue in Manhattan and in Woodbury Commons, as well as online, but it will be closing stores in Chicago, Las Vegas and Seattle.
Five smaller concept stores and seven Barneys Warehouse locations will also shutter operations.
"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,” Vitale noted.
“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.”
On Instagram, the company posted, “Trends come and go, but institutions are timeless.”
Vitale added, "I would like to express my deep appreciation and profound gratitude for the continued support of our employees, vendor community and customers – truly the lifeblood of Barneys New York. Our decades-long partnerships and relationships will continue for many years to come. We are unwavering in our commitment to executing our forward thinking vision on what retail should look like today."
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