Barneys New York announced on Tuesday it will file for bankruptcy and close 15 of its 22 stores as it seeks ways to restructure and refinance.
on Tuesday that the luxury retailer has filed for Chapter 11 bankruptcy and put itself for sale.
The move comes in response to exorbitant rent costs, falling foot traffic, and rising competition from e-commerce giants that continues to plague not just Barneys, but traditional retailers around the country. The rent at its Manhattan flagship store, for example, recently rose from $16 million to $30 million,We went to Barneys' Manhattan flagship to see why it's the latest department store to reportedly consider bankruptcy
In a statement, Barneys' CEO Daniella Vitale said the bankruptcy is part of a larger structuring and refinancing plan. The retailer recently received $75 million in new financing from Hilco Group and the Gorden Brothers Group to keep it afloat as it continues in bankruptcy proceedings. "Our goal is to continue serving our customers in key flagship markets and globally through Barneys.com for the long term," Vitale said in a statement."While difficult decisions had to be made, this process will allow us to reset our financial position and maintain our longstanding vendor relationships.
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