The department store chain Barneys NY announced that it is filing for bankruptcy, according to The New York Times. The announcement confirmed weeks of speculation. Barneys NY will close 15 locations, but will keep its Manhattan store open during the bankruptcy.

The company is restructuring its business and will pursue a sale. Barneys NY, controlled by hedge fund Perry Capital, has struck a deal for $75 million in additional financing from firms Gordon Brothers and Hilco Global in order to stay afloat during the proceedings.

Daniella Vitale, the store’s CEO, said, “Our goal is to continue serving our customers in key flagship markets and globally through Barneys.com for the long term. While difficult decisions had to be made, this process will allow us to reset our financial position and maintain our longstanding vendor relationships.”

Falling revenue and increasing rent at its Madison Avenue store in Manhattan hurt the company. The Manhattan location was a symbol of its brand name and used to account for a third of the company’s revenue

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Economics, Finance and Investing