Barneys: countdown to bankruptcy
The New York department store stated last week that was actively seeking for opportunities to “reinforce its balance sheet and ensure its long-term growth”.
Barneys, a step closer to bankruptcy. The New York department store could file for bankruptcy as soon as this week, according to WWD. The company admitted last week that it was actively seeking for opportunities to reinforce its balance sheet and ensure its long-term growth.
The company reflects multiple late payments to its suppliers due to the lack of cash, increased after the rise in the rent of its flagship store in Madison Avenue (New York). Despite this, brands continued in the company´s side, that has enough stock to face the following months.
Barneys faces a liquidity problem after the rise of the rent in its flagship store in Madison Avenue
Barneys is one of New York´s most historic department stores. The company that opened its first store in 1923, is specialized in positioning middle and high-end fashion brands such as Marc Jacobs, Prada, Jil Sander, Dries van Noten or Diane von Furstenberg.
The company filled for Chapter 11 bankruptcy protection in 1996, and after this sold its establishments in Japan and Singapore. If the company fills bankruptcy again, it will sum up to the big amount of American department stores in crisis, after Sears was saved of bankruptcy in the beginning of this year.
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