Barneys reportedly exploring bankruptcy filing
High rent may be taking a toll on Barneys New York.
The luxury retailer is making preparations for a bankruptcy filing that could come as soon as this month, reported CNBC, which cited people familiar with the matter.
Barneys is facing a liquidity crunch spurred by a rent hike at its flagship on Manhattan’s Madison Avenue, according to the report, and has engaged Kirkland & Ellis and financial advisers a M-III Partners to assist with the potential preparation. The rent at the store, owned by Ashkenazy Acquisition Corp, jumped from roughly $16 million to approximately $30 million in January, the report said.
A Barneys spokesperson told CNBC that, “our Board and management are actively evaluating opportunities to strengthen our balance sheet and ensure the sustainable, long-term growth and success of our business.”
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The luxury retailer is making preparations for a bankruptcy filing that could come as soon as this month, reported CNBC, which cited people familiar with the matter.
Barneys is facing a liquidity crunch spurred by a rent hike at its flagship on Manhattan’s Madison Avenue, according to the report, and has engaged Kirkland & Ellis and financial advisers a M-III Partners to assist with the potential preparation. The rent at the store, owned by Ashkenazy Acquisition Corp, jumped from roughly $16 million to approximately $30 million in January, the report said.
A Barneys spokesperson told CNBC that, “our Board and management are actively evaluating opportunities to strengthen our balance sheet and ensure the sustainable, long-term growth and success of our business.”
Click here to read the full story.