Barneys New York explores options that include bankruptcy - sources

[Eugene]

Source: Reuters

BUSINESS NEWS JULY 13, 2019 / 3:56 PM / UPDATED AN HOUR AGO

Exclusive: Barneys New York explores options that include bankruptcy - sources

Jessica DiNapoli, Mike Spector
3 MIN READ

NEW YORK (Reuters) - U.S. luxury department store operator Barneys New York Inc is exploring options that include a bankruptcy filing, as it struggles with high rents and changing consumer tastes, people familiar with the matter said on Saturday.

The nearly 100-year-old retailer, known for its high-end designer collection, is working with law firm Kirkland & Ellis LLP to prepare for a potential bankruptcy filing that could come in the coming weeks, one of the sources said.

Barneys has not yet made a final decision on whether or not to seek bankruptcy protection, and is weighing other possible solutions for addressing high rents that are straining its business, the sources cautioned. Filing for bankruptcy would be one option to deal with expensive leases, the sources said.

The retailer’s flagship department store on Madison Avenue in Manhattan has weighed on its finances, one of the sources said. The sources asked not be identified because the deliberations are confidential.

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Read more: https://www.reuters.com/article/us-barneys-bankruptcy/exclusive-department-store-barneys-new-york-explores-bankruptcy-sources-idUSKCN1U80NE

[Farmer-Rick]

1. So, I guess a handful of American capitalist kings' aren't enough to keep a retail store afloat.

So, I guess just catering to the winners in the capitalist lottery really can't keep your business thriving.

Maybe you need to spread the wealth so that everyone can buy things.