Even some of the most respected brands in the world are not protected from the ever-changing economic times. One of the most visited retail locations in the world is asking for a lifeline.
CNBC is reporting that Barneys New York has formally filed for bankruptcy on Tuesday, August 6. The request for financial relief plans to reduce their brick and mortar footprint through the country by closing eight of their locations. This includes their some of their namesake shops in Chicago, Las Vegas, Seattle and five smaller Barney Warehouse operations in other markets.
According to the filing the luxury department chain has raised over $75 million in funds to support the sales process of the aforementioned establishments. The news website speculates that without an influx of capital the brand will be forced to liquidate. Apparently a combination of factors have contributed to their current state of insolvency including a steep drop in foot traffic and the rising popularity of luxury online merchants such as Mr. Porter.
This is not the first time Barneys New York has been in a crunch for cash. In 1996 the retailer asked for assistance when dealing with their then Japanese parent company Isetan. Closure was also avoided in 2012 when they were saved by Perry Capital, a hedge fund based in New York City.
Barneys New York first opened in 1923 in Manhattan. It has since become an iconic destination for the Big Apple.