The exclusive Barneys New York department stores went bankrupt.
Commodity stores with 100 years of tradition were looking for investors due to financial problems. Currently, the company has submitted an application to enable protection against creditors. In addition, Barneys New York has raised $75 million from two investors to carry out a recovery program.
The reason for the company’s problems are rising rents, which in some locations have doubled from USD 16 million to USD 30 million at Madison Avenue in New York.
Given the current situation, 15 out of 22 stores are planned to be closed, including Chicago, Las Vegas and Seattle.