Iconic Hudson Valley Retailer Files For Bankruptcy
A nearly century-old retailer in New York has filed for bankruptcy.
CNBC reports that one of the quintessential luxury retailers of New York has filed for bankruptcy. Barneys New York officially filed for bankruptcy for the second time on Tuesday, August 6, 2019. The plan is to find a buyer to stop liquidation and to narrow the scope of its stores. Their two New York State locations, including a location in the Hudson Valley, will remain open.
Barneys will maintain its iconic location on Madison Avenue in New York City, CNBC reports. It will also keep the locations in Beverly Hills, San Francisco, and Copley Place. Barneys also plans to keep the Barneys Warehouse locations in the Woodbury Commons Premium Outlets and Livermore open. The Barneys Warehouse location in the Woodbury Commons is its only Hudson Valley location.
Despite keeping both New York locations open, Barneys plans to close most locations. According to CNBC, Barneys will close its Chicago, Las Vegas, and Seattle locations. Barneys will also close five concept stores and seven Barneys Warehouse locations.
Prior to 2019, Barneys filed for bankruptcy in 1996 because of a dispute with its Japanese owner, the department store company Isetan. In 2012, Barneys almost filed for bankruptcy until Perry Capital, a hedge fund run by Richard Perry, a New York financier, took control of the company. Perry Capital took over through a $540 million debt-for-equity swap, according to CNBC.
CNBC reports that Barneys two bankruptcy filings stem mainly from rent dispute. For its Madison Avenue location, rent went fro, $16 million to roughly $30 million in January 2019. Ashkenazy Acquisition purchased the Madison Avenu and Beverly Hills location from Isetan in 2001, where they were granted the ability to raise the rent, according to CNBC. Barneys was unable to protest the rent raise.