Barneys New York is reportedly exploring options that include a bankruptcy filing, as the US luxury department store chain grapples with high rents and changing consumer tastes.
According to Reuters, Barneys is working with law firm Kirkland & Ellis to prepare for a potential bankruptcy filing that could come in the next few weeks, sources told the publication. It is understood the retailer, however, has not yet made a final decision on seeking bankruptcy protection and is considering other solutions for addressing high rents that are straining its business.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
In particular, Barneys’ flagship department store on Madison Avenue in Manhattan is said to have weighed on the company’s finances.
The nearly 100-year-old retailer is known for its high-end designer collections. In addition to its upscale department stores, Barneys operates warehouse outlets and Freds restaurants. If it were to file for bankruptcy, it would join a number of other retailers to have done so over the past year, including Sears Holdings, Toys “R” Us and Gymboree.
