Barneys New York Inc., an American chain of luxury department stores, headquartered in New York city, had been probing multiple financial measures which also include a chapter 11 bankruptcy protection, as the US luxury department store had been vying with higher rental costs alongside ever-evolving consumers’ tastes, at least four people knowledgeable with the subject-matter unveiled on Saturday, the 13th of July 2019.
An almost century-old-retailer, Barneys New York Inc., widely known for its upmarket, high-end designer collection, had engaged a law firm, Kirkland & Ellis LLP in order to prepare a potential bankruptcy filing, which could come forth as early as next week, one of the four people familiar with the matter told in terms of anonymity, as the source was not authorized to speak about the matter in public, while another source had been quoted saying that the US luxury department store had yet to make a final decision on whether it would be seeking bankruptcy protection.
Besides, the luxury store had been aiming at some fundraising attempt to address rising rental costs, which had been hurting its business over the last decade. Should Barneys fall and file for a bankruptcy protection, it would be the most high-end victim of retail industries.
Besides, the fact highlights that even a luxury department store of Barneys’ stature is vulnerable to fierce competition from e-commerce giants likes of Amazon.com Inc. Nonetheless, while brick-and-mortar retailers seemed to be getting dented amid havoc-scale pressure from online retailers, Barneys said in a statement on Saturday (July 13th), “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”.