Home / Business / The luxury department store Barney & # 39; s would have failed

The luxury department store Barney & # 39; s would have failed

Reuters, citing unnamed sources, reported on Saturday that the company "has not yet made a final decision on whether to protect itself or not from bankruptcy and is considering other possible solutions for to cope with the high rents that weigh on its activity ".

The sources told Reuters that filing an application for bankruptcy protection could help ease the pressure exerted by expensive leases.

Why retailers are fleeing Fifth Avenue

In a statement to CNN Business, the luxury department store, formerly called Barneys New York, said it "actively evaluated opportunities to strengthen our balance sheet and ensure long-lasting and sustainable growth and success. term of our company ". The company did not specify whether these options included bankruptcy.

Barney's has several branches in the United States, but its head office and flagship store line Fifth Avenue, New York, which has been emptied for months from major luxury retailers while they are fleeing rents high and changing tastes of consumers.

Calvin Klein, Ralph Lauren (RL), Lord & Taylor, Henri Bendel and, it seems, Versace leave the coveted shopping destination of Manhattan.
High-end brands have used their stores in New York's upscale blocks to attract locals and wealthy tourists. Every company that leaves Midtown faces its own challenges. But in general, the value of cavernous flagship stores is under pressure as more and more customers buy online and on their phones.
Barneys also has several locations in Los Angeles, including the upscale neighborhood of Rodeo Drive, where rents would also have increased.
While Barney's is assessing its footprint, the company has announced that it will also open new storefronts in the New Jersey American Dream retail complex and in Miami Beach. He has also opened a new store in Las Vegas and recently announced the launch of a specialty "Cannabis Lifestyle" store in Beverly Hills called "The High End".

"We continue to evolve our strategy and business model for the benefit of all our stakeholders through our forward-thinking and highly modern approach," the company said in a statement.

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