Ninety-six-year old Barneys New York Inc., the US-based departmental store operator alongside a favorite for the fashion ultra-posh had filed for a Chapter 11 bankruptcy protection on Tuesday, the 6th of August 2019, and put the company up for sale, pointing towards a growing grunt among luxury retailers which were scuffling to freshen up their images amid caustic competitions from online rivals.
In point of fact, the New York-based luxury chain department store operator’s misfortune was almost entirely catalyzed by a rapid shift of consumers’ behavior to lean more on to online alternatives, an evolved market backdrop which is denting profit margins of a number of brick-and-mortar stores across the globe.
Once cherished among elites and reputed as a retailer that could make or break a brand, Barney’s near-century-old business also had taken a header following recent spikes in rents. Nonetheless, in its Tuesday’s (August 6th) statement, Barneys added that the company had accumulated a lump-sum of $75 million in new financing from the Gordon Brothers alongside an affiliate of Hilco Global, which it would be using to stay operational while hiding behind bankruptcy protection.
Meanwhile, signaling a possible sell-off in a near-term outlook, Barneys’ Chief Executive, Daniella Vitale said, “Barneys executives and board members “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. ”