Barneys is Going Bankrupt and Given $218 Million Cash Injection
Barneys New York Inc. is an American chain of luxury department stores founded and headquartered in New York City. After operating for more than 80 years, earlier last week they’re filling for bankruptcy.
The news broke via BoF (The Business of Fashion) that said the luxury department store chain had been suffering due to rising rent prices in NY and low rates of customers who shop offline. Barneys filed papers at the US Bankruptcy Court for the Southern District of New York and listed estimated liabilities of between $100 million and $500 million.
They eventually receive a lifeline in the shape of $218 million from Brigade Capital Management and B. Riley Financial which allows Barney to pay back the $75 million they received from Hilco Global and the Gordon Brothers Group. The remaining money will allow Barneys to continue operating.
Writer: Ervina Michelle Liem
Editor: Olivia Elena Hakim