Exclusive: Barneys New York Department Store Explores Bankruptcy – Sources

NEW YORK (Reuters) – The US luxury department store Barneys New York Inc. is exploring a bankruptcy case while facing high rents and changing consumer tastes. consumers, said Saturday people close to the file.

The 100-year-old department store, known for its high-end collection of designers, is working with Kirkland & Ellis LLP to prepare for a possible bankruptcy filing in the coming weeks, a sources.

Barneys has not yet made a final decision on the opportunity to seek bankruptcy protection and is considering other possible solutions to deal with the high rents that are penalizing its business, the sources warned. . The bankruptcy filing would be an option to deal with expensive leases, the sources said.

The retailer's flagship department store on Madison Avenue in Manhattan has weighed on its finances, said one of the sources. The requested sources are not identified because the deliberations are confidential.

"At Barneys New York, our customers remain our top priority and we are committed to providing them with the excellent services, products and experiences they expect," the company said in a statement.

"We continue to work closely with all of our business partners to achieve the goals we have set for ourselves and maximize value. To this end, our Board of Directors and Management are actively evaluating opportunities to strengthen our balance sheet and ensure the long-term, sustainable growth and success of our business, "added the company.

If she declares bankruptcy, Barneys would be one of the most likely victims of the slowdown in retail sales. Sears Holdings Inc., Toys "R" Us Inc. and Gymboree Group Inc. have also filed for bankruptcy in the past year.

In addition to its high-end department stores, Barneys operates Barneys Warehouse outlets and Freds restaurants. In all, Barneys has 28 branches, according to its website. Beverly Hills, California; Chicago; Seattle; Boston; San Francisco; and Las Vegas.

Barneys became known in the 1930s by placing women dressed in caskets in front of the breweries of New York City, where they were distributing matchbooks advertising the store, according to the retailer's website.

The store, now known for exclusive clothing made by designers such as Burberry Group Plc, began as a destination for middle-clbad families. He went into luxury fashion in the 1960s.