Barneys New York Inc. filed for bankruptcy protection and reached an agreement with lenders for a financing package to give the luxury retailer time to find a buyer for the company.
In a news release early Tuesday, Barneys, which operates 13 department stores and nine warehouse stores, said that as part of the chapter 11 process it would shut most of its locations.
The Wall Street Journal on Monday reported on the retailer’s bankruptcy plans.
Barneys said it has secured $75 million in new capital from affiliates of Hilco Global and the Gordon Brothers Group, which, combined with operating cash flow, will help the retailer meet its financial commitments. Gordon Brothers and Hilco Global specialize in selling assets for distressed companies,
As a part of the chapter 11 process, Barneys will close its stores in Chicago, Las Vegas and Seattle, in addition to five smaller concept stores and seven Barneys Warehouse locations, the company said.
Five other stores will remain open, including outlets in New York, Boston, San Francisco and Beverly Hills, Calif., as well as two other Barneys Warehouse locations and the company’s e-commerce sites, the retailer said.
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