Barneys files for bankruptcy for second time

Posted by


MARIA: WELCOME BACK. WELL, BARNEY’S IS THE LATEST TO TAKE A HIT IN THE ONGOING RETAIL BATTLE FOR STORES TO STAY AFLOAT. SUSAN LEE IS COVERING THE STORY THIS MORNING.>>LET’S CALL IT THE RETAIL ICE AGE, MARIA. BARNEY’S IS FILING FOR BANKRUPTCY FOR A SECOND TIME. THEY HAVE 60 DAYS TO FIND A BUYER OR BARNEY’S LIQUIDATES. IT’S A SMALLER PLAYER THAN SAKS OR NIEMANN MARCUS. THEY OPERATE 13 DEPARTMENT STORES, NINE WAREHOUSES. IN THE 60 DAYS TO LOOK FOR A BUYER, THEY’LL KEEP OPEN SEVEN STORES INCLUDING THE FLAGSHIP HERE IN MANHATTAN. THEY WILL BE CLOSING IN CHICAGO AND LAS VEGAS AND SEATTLE. AND MARIA, WHAT BARNEY’S CITES THE REASON FOR BANKRUPTCY IS THE SAME REASONS WE’VE HEARD OVER AND OVER AGAIN BY BRICKS AND MORTARS, WHICH THEY HAVE EXTENSIVE RENT TO PAY, THEY’VE PAID DOUBLE THE RENT IN THE PAST YEAR, $27 MILLION, AND ALSO THE E-COMMERCE THREAT THAT COMES FROM HIGH END RETAILERS LIKE THE REAL REAL DOT-COM. IT’S A BLEMISH FOR RICHARD PERRY WHICH SAVED BARNEY’S FROM BANKRUPTCY IN 2012. HE SWAPPED DEBT TO BUY INTO BARNEY’S. MARIA: YOU WERE TALKING ABOUT REAL ESTATE AND RETAIL.>>A MAN IN HIS 20s LEARNED EARLY ON IF HE DIDN’T FIND WAYS TO CONTROL THE REAL ESTATE, WHERE STORES WERE, HE SAID YOU’RE IN DEEP TROUBLE. LANDLORD HOLDS ALL THE CARDS. MARIA: YOU’RE A HOSTAGE TO THE LANDLORD.>>THEY HOLD ALL THE CARDS. YOU’VE GOT TO CONTROL YOUR REAL ESTATE. DAGEN: THEY FOUGHT THAT RENT INCREASE. IT’S CLOSE TO $28 MILLION A YEAR THAT THEY’RE PAYING NOW ON THE MADISON AVENUE FLAGSHIP STORE. IT NEARLY DOUBLED FROM WHAT IT WAS. THEY WERE FIGHTING THAT IN ARBITRATION FOR SOME TIME. IF YOU HAD BEEN IN THE STORE OR KNEW ANYBODY WHO WORKED THERE, THE WRITING HAS BEEN ON THE WALL FOR WELL OVER A YEAR BECAUSE THE MERCHANDISE IN THE STORE WAS STEAL. YOU STU STALE. YOU WOULD HAVE THINGS THAT HAD BEEN ON SALE AT OTHER RETAILERS. THEY HAD CLEARED THE RACKS. THEY HAD LAST SEASON’S MERCHANDISE FROM A LOT OF MAJOR DESIGNERS. THEY WEREN’T SHIPPING TO THEM. THAT’S WHEN IT BECOMES A DOWNWARD SPY L RAIL FOR A LUXURY — SPIRAL FOR A LUXURY RETAILER. WHEN YOU DON’T HAVE THE LATEST, THE GREATEST, THE NEWEST FASHION IN THE STORE, THEN PEOPLE WILL STOP SHOPPING THERE. THERE IS A QUESTION WHETHER BARNEY’S AT THIS POINT WILL BE ABLE TO RECOVER. BECAUSE AGAIN, ITS ONLINE SHOPPING EXPERIENCE IS POOR COMPARED TO NETAPORTE. THEY DELIVER SAME DAY IN NEW YORK CITY. BARNEY’S IS NOT THE SAME EXPERIENCE.>>IF YOU KNOW YOUR BRANDS, YOU KNOW YOUR SIZES, IT’S EASY TO GO ONLINE.>>BARNEY’S HAS $100 MILLION IN ASSETS, $100 MILLION IN DEBT, A LOT OF THAT IS OWED TO DESIGNERS LIKE BURBERRY AND THE LIKE THAT THEY STILL OWE MONEY TO FOR THE MERCHANDISE THAT IS STILL IN THE SHOPS. ALSO, IT’S THE HIGH END DEPARTMENT STORE CHAINS THAT ARE CLOSING DOWN. I FEEL LIKE FIFTH AVENUE IS CHANGING QUITE DRAMATICALLY. HEN DRY HENRDRY HENRYRY HENRY BENDL SHUT DOWN LAST YEAR. BARNEY’S IS OPEN FOR NOW. MARIA: I WAS SORRY TO SEE BENDL’S GO.>>IT WAS A NEW YORK INSTITUTION.>>AT ONE POINT BY THE LIMITED, I THINK THEY OWNED BENDL AT ONE POINT. ONE THING THAT HURT BARNEY’S, NIEMANN MARCUS OWNSBURG NIEMANN MARCUS OWNS BRG NIEMANN MARCUS OWNS BERGDORF GOODMAN. A LOT OF PEOPLE WILL PULLED TO A LOCATION WITH A MORE STABLE COMPANY. IF YOU OFFER THEM — BARNEY’S CHANGED THE COMMISSION STRUCTURE IN THE LAST YEAR AND-A-HALF. THAT FORCED A LOT OF PEOPLE TO RETHINK WORKING THERE.>>WAS BARNEY’S JUST TOO SMALL AND HE NIEMANN MARCUS HAS THE MUSCLE TO SURVIVE. MARIA: IT HAS A LOT MORE SCALE. DAGEN: BARNEY’S HAD CHRONIC FINANCIAL PROBLEMS FOR THE LAST LITERALLY 20 YEARS. AND THEY’VE NEVER BEEN ABLE TO HE RESOLVE THEM. MARIA: WHY? BECAUSE OF THE RENT ISSUE.>>YEAH. BRICKS AND MORTARS, E-COMMERCE, I WANT TO NOTE THAT — MARIA: BARNEY’S IN PARTICULAR, IT HAS HAD PROBLEMS FOR A LONG TIME L REMEMBER THEY TIME.L REMEMBER THEY ER REMEMBER THEY USED TO HAVE A WAREHOUSE SALE, I USED TO LOVE THAT.>>DAGEN: OGEN: ONEN: DANEN: DAGEN: ONE OF THE BIG PROBLEMS WAS THE EVERY-EXPANSION, THEY GOT TOO BIG FOR THEIR BRITCHES.>>AMAZON IS RUMORED TO BE LOOKING AT LORD AND TAYLOR FOR ACTUAL FRONT STORE SPACE. MARIA: TALK ABOUT THE SIGN OF THE TIMES. AMAZON GOING BRICK AND MORTAR.>>DIFFERENT SHOPPING WORLD.>>AND THE REAL REAL WHICH HAS TAKEN OFF WHICH IS USED CLOTHING. IT’S $2,000 HANDBAGS.>>IT’S ENVIRONMENTALLY CONSCIOUS.>>AND RENT THE RUNWAY TOO. PEOPLE INSTEAD OF BUYING — MAYBE NOT AT BARNEY’S BUT INSTEAD OF SHOPPING FOR EVERYDAY WORK WARDROBES, THEY RENT IT.>>YOU DON’T HAVE TO OWN IT.

64 comments

  1. If store chains haven't figured out by now how to remain competitive in today's digital marketplace…then it's the fault of their management. Look at Walmart and many others who have figured out how to integrate online sales into their brick and mortar stores.

  2. AMERICANS AND LEGAL IMMIGRANTS NEED TO STOP BUYING THROUGH AMAZON AND BUY LOCAL … EVEN SMALL BUSINESSES ON LINE! AND WATCH IF THERE IN DEMOCRATS AREAS. THEY MAKE IT HARD …. ALSO SOME CLOSING IS NOT THE END OF THE WORLD.
    SO MANY NEW ONES ARE OPENING!! WE HAVE JOBS….. COMPANIES RETURNING….. WHILE THE DEMOCRATS LIBERALS AND MEDIA FIGHT IT EVERY STEP!

  3. Barneys has 100 MILLION in assets and 100 MILLION in debt and they couldn't afford the rent. Sure, you bet. Should have liquidated at 70 Million in equity and re-grouped.

  4. I love you. You love me. Barney’s has got no money. With an empty store, and an odd strange scent, trump will be your president ❤️

  5. FOX NEWS is the Russian Communist network…promoting Trumps Hate…..IMPEACH and PROSECUTE the Russian Communist.

  6. Part of a retailers job is to keep up with the market and make responsible choices. The CEO failed on both parts.

  7. The Democratic Party is failing so horribly it’s sad how they think there normal or something there evil and socialist and have no clue of reality and what we want .. we want TRUMP

  8. Business is booming! The economy has never been better. More people are working than ever except in places with 15 dollar an hour minimum wage. The stock market is doing awesome. MAGA 2020!!

  9. I'm SHOCKED, Dems are NOT shopping at Barney's to support higher costs they so love? What a bunch of ungrateful rats! Shopping online will never be the same experience as musing from store to store, stop for coffee, enjoy the city walking by. Are Americans gonna end up staying home eating delivery pizzas while shopping online. This is VERY SAD. If Barney's management/staff ever contributed to Dem politicians campaigns they are probably vomiting right now.

  10. The truth bankruptcy is to gain benefit of country their wealthy lifestyles keeping going forward with their own rich and luxuries famous…..

  11. this is fake news. trump says the economy is the strongest it has every been in the history of the united states

  12. I guess Donald Trump isn't the only one who files for bankruptcy laws to protect his businesses from totally failing.

  13. Trust me no one in NYC is buying $200 ties anymore – the billionaire down my block is wearing cargo shorts and flip flops

  14. YOU HAVE TO BE KIDDING TALKING ABOUT THE OUT OF TOUCH LMFAO….NOBODY EXCEPT A FEW EVEN CARE …..SO MANY SUPERFICIAL BEINGS THESE DAYS……$800 TEE SHIRT BAHAHA  SUCKERS BORN EVERY MINUTE. PEACE

  15. If Barney’s had any clue on how long to stay afloat it would easily tap into the e-commerce side and open up an account with Amazon so they can for fill orders at a much higher rate with better policies. They should downsize retail space and elevate productivity

  16. all these stores closing due to internet, now the building owners are going to have to files bankruptcy also, internet & Jeff Bazos bringing down america, buy a plot of land & grow your own food, the end of United (not) States is near, enjoy your new democratic socialism.

  17. You'd think that with all of the corporate tax cuts that tRump handed out, the wealthy who became wealthier could have supported them. 30 years since regular people saw a significant raise.

  18. Barneys? What about K-Mart? …Gold Circle? You rich folks boo hooing about Barneys is too funny! Remember when you could get canvas tennis shoes at K-Mart for $2? nah! You probably pay BIG bucks for cheap shoes…

  19. If $250 for a scarf won't pay their bills, how are they going to stay open when Rashida Tlaib raises the minimum wage to $20 an hour?

  20. Love Barney’s! The Beverly Hills store is so elegant. Seattle?!? I can’t imagine those cheap tree huggers spending money there! Too bad about Las Vegas, beautiful store in the Venetian.

  21. The biggest downfall was the design of this store, often it felt like a weird ikea store.

    The second biggest downfall was way way overpriced products from “ niche “ brands with no history and even worse no real quality.

    They tried overhyping this store with faked modern concepts often tacky, and overrated.

    This store should have stayed the way it was in the 80’s a humble simple store with realistic prices and solid brands with long proved history.

Leave a Reply

Your email address will not be published. Required fields are marked *