After months of speculation, Barneys is the latest chain to fall to bankruptcy.
The restructuring plan has the luxury retailer, which operates 22 stores, shutting its doors in areas like Chicago, Las Vegas, and Seattle.
According to WSJ, the company will continue to run 7 remaining stores, including Manhattan and Beverly Hills, while its current owner, the New York hedge fund Perry Capital, looks for a buyer.
The ol’ retail meteor strikes again
In only a matter of years, we’ve watched legacy storefronts like Toys ‘R’ Us, Sears, Macy’s, and many others fall to the rough ridges of the e-commerce trail.
But that wasn’t the only economic force at play against Barneys and Perry Capital: This year, rent for Barneys’ flagship store in Manhattan nearly doubled, which is unfortunate timing for a company that’s almost $200m in debt.
Where there’s a bankruptcy, there’s a private equity
In the 11th hour of the hearing, a pair of investment firms stepped in to bail the beleaguered Barneys out of its hole with a $218m loan.
Barney’s new loan is expected to fund the company’s stay until the end of October as it looks to find a buyer.