Barneys New York, a retail stalwart for nearly a century, has filed for bankruptcy.
CNBC reports: “The retailer said it will focus on running only 5 of its more than 10 namesake stores: on New York’s Madison Avenue, in downtown Manhattan, Beverly Hills, San Francisco and Copley Place. It will also keep open its Barneys Warehouse stores in Woodbury Common and Livermore. It plans to close its stores in Chicago, Las Vegas and Seattle, as well as five smaller concept stores and seven Barneys Warehouse stores.”
Industry watchers cite high rents, falling sales, and direct-buying online as reasons for the filing: “Rent at its flagship on Madison Avenue jumped from roughly $16 million to about $30 million in January, nearly wiping out its earnings before interest, taxes, depreciation and amortization.”
Said CEO Daniella Vitale to Bloomberg: “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.”