Luxury iconic clothing brand Barney’s New York has filed for chapter 11 bankruptcy on Tuesday August 6th citing rapidly rising rents and a huge decline in retail customers, as the luxury brand failed to change with the times and become more modern.
To add to their woes the racial profiling of black customers did much to tarnish their image as an upscale luxury brand, as well as only carrying limited sizes for their women’s clothes and totally ignoring the fact that most women in the U.S. are a size 14 (67% in fact) or larger has not gained them any new fans or customers for that matter.
The following statement was issued by Barneys New York:
“For more than 90 years, Barneys New York has been an iconic luxury specialty retailer, renowned for its edit, strong point of view, creativity and representation of the world’s best designers and brands,” said Daniella Vitale, Chief Executive Officer & President said via press release. “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 optimize our operations.”
Due to the bankruptcy Barneys will close 15 of it’s 22 stores which will include the stores in Chicago, Las Vegas and Seattle, seven (of the nine) Barneys warehouse outlets, and about five concept shops. The struggling retailer has vowed to keep all five flagship stores in New York, Boston, Los Angeles and San Francisco. Barneys.com and BarneysWarehouse.com will continue to operate and remain open. Barneys New York has filed for Chapter 11 before in 1996 amid a dispute with Japanese owner Isetan but the reorganization was not noticed by customers and this poses a huge risk to the future of this upscale clothing brand. We will continue to follow this story as it develops.