US Luxury store chain Barneys in New York has filed for bankruptcy and are looking for a buyer.
The department store chain has faced soaring rents at their flagship store in Manhattan’s Madison Avenue from $16m to a whopping $30m.
The retailer secured $75m in new financing to stay afloat from Hilco Global and the Gordon Brothers Group.
Daniella Vitale chief executive said, “Like many in our industry, Barneys New York’s financial position has been dramatically impacted by the challenging retail environment and rent structures that are excessively high relative to market demand.
“In response to these obstacles, the Barneys New York board and management team have taken decisive action by entering into a court-supervised process, which will provide the company the necessary tools to conduct a sale process, review our current leases and optimise our operations.”