US department store Barneys has filed for bankruptcy and put itself up for sale, blaming the challenging retail market and “excessively high” rents for its demise.
It has secured $75m (£61.6m) funding from financial specialists Hilco Global and the Gordon Brothers Group, which will help the chain meet financial commitments and “optimise asset value recovery”.
As part of the chapter 11 bankruptcy, Barneys will close eight stores, including branches in Chicago, Las Vegas and Seattle, as well as seven of its warehouses.
Five flagships – two in New York, and one in each of Beverly Hills, San Francisco and Boston – two warehouses, and the websites Barneys.com and BarneysWarehouse.com will continue to operate “without disruption” it claimed.
Barneys is awaiting court approval for authorisation to support its operations during the process, including paying employees, manufacturers and suppliers.
CEO and president Daniella Vitale said: “Barneys’ financial position has been dramatically impacted by the challenging retail environment and rent structures that are excessively high relative to market demand.
“Barneys has taken action by entering into a court-supervised process, which will provide the necessary tools to conduct a sale process, review our current leases and optimise our operations.”