- Barneys New York announced on Tuesday it has filed for Chapter 11 bankruptcy and will close 15 of its 22 stores as it seeks ways to restructure and refinance.
- Barneys will shutter stores in Chicago, Las Vegas, and Seattle. It will also close five concept stores and seven Barneys Warehouse locations, primarily in outlet malls around the country. Its New York flagship store, however, will remain open.
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The move comes in response to exorbitant rent costs, falling foot traffic, and rising competition from e-commerce giants that continues to plague not just Barneys, but traditional retailers around the country.
The rent at its Manhattan flagship store, for example, recently rose from $US16 million to $US30 million, Reuters reported. That store will remain open during the bankruptcy proceedings.
In a statement, Barneys’ CEO Daniella Vitale said the bankruptcy is part of a larger structuring and refinancing plan. The retailer recently received $US75 million in new financing from Hilco Group and the Gorden Brothers Group to keep it afloat as it continues in bankruptcy proceedings.
“Our goal is to continue serving our customers in key flagship markets and globally through Barneys.com for the long term,” Vitale said in a statement. “While difficult decisions had to be made, this process will allow us to reset our financial position and maintain our longstanding vendor relationships.”
Here’s a full list of closing Barneys stores, according to bankruptcy court filings:
- 48650 Seminole Drive, Cabazon, California
- 850 East Ventura Blvd., Camarillo, California
- 5620 Paseo Del Norte, Carlsbad, California
- 869 Americana Way, Glendale, California
- 189 The Grove Drive, Los Angeles, California
- 395 Santa Monica Place, Santa Monica, California
- 1840 Sawgrass Mills Circle, Sunrise, Florida
- 94-790 Lumiaina St., Waipahu, Hawaii
- 15 East Oak St., Chicago, Illinois
- 5220 Fashion Outlets Way, Rosemont, Illinois
- 3327 Las Vegas Boulevard South, Las Vegas, Nevada
- 194 Atlantic Ave., Brooklyn, New York
- 200 Tanger Mall Drive, Riverhead, New York
- 1811 Walnut St., Philadelphia, Pennsylvania
- 600 Pine St. Seattle, Washington
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