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Barneys New York is Preparing for Bankruptcy



The reason for the bankruptcy of Barneys New York was the continuing outflow of clients and falling sales amid rising rental rates.
 Barneys New York

The American department store chain Barneys New York, specializing in the sale of luxury fashion, has filed for bankruptcy. As reported by CNBC, the retailer was also able to attract a loan of about $ 75 million for the time being, while the process of finding a buyer for the assets. 

Thanks to the deal with investors, Barneys New York continues to operate. At the same time, the retailer, which has been conducting its history since 1923, will have to optimize the network, closing 8 of 13 department stores, as well as five conceptual stores and seven stores under the brand Barneys Guerneys, working in the format of discount points. 

Earlier it was reported that the reason for the bankruptcy of Barneys New York was the continuing outflow of customers and falling sales amid rising rental rates for retail space. In recent years, department stores have found it difficult to attract consumers because of the increase in direct sales by luxury brands, as well as the shift of consumers to online shopping. 

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