Barneys files for bankruptcy
U.S. luxury department store chain filed for Chapter 11 bankruptcy and put itself up for sale. Earlier, the cash-strapped retailer faced soaring rents and failing in its earlier attempts to find a buyer.
The company plans to reduce its footprint, looking for a buyer to stave off liquidation
Stocks impacted: Barneys New York Inc.
The company will focus on running only 5 of its more than 10 namesake stores, and also plans to close its stores in Chicago, Las Vegas and Seattle, as well as five smaller concept stores and seven Barneys Warehouse stores. Barneys has raised $75 million to support a sale process. The bankruptcy filing will allow the company "to conduct a sale process, review our current leases and optimize our operations", said the retailer. As a reminder, the company avoided bankruptcy in 2012, when Perry Capital, a hedge fund run by New York financier Richard Perry, took control over the company through a $540 million debt-for-equity swap.
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