Weighing in on Barneys’ Viability, Amid a Possible Bankruptcy
Even if Barneys New York goes bankrupt and factors continue to restrict credit, there’s something about the brand that redefines sustainability. Barneys has been through it all — bankruptcy in the Nineties, failed expansion strategies, disruptive ownership and management changes. It’s been a survivor through changing internal and external circumstances — big rent increases, shrinking profitability, increased competition and different ownership. But those challenges are raising renewed concerns about whether the 96-year-old retailer will continue to survive in some scaled-down, restructured form. Reports of a possible bankruptcy surfaced last weekend, first on CNBC. They were followed by a statement from Barneys that “the board and management are actively evaluating opportunities to strengthen our balance sheet and ensure the sustainable, long-term growth and success of our business.” That means Barneys wants to keep going, though one retail source suggested liquidation as a possibility, and that Barneys’ owners, Richard Perry and Ron Burkle, would recover more money in that scenario, escape what’s owed landlords and vendors, and that so far the owners have been unsuccessful trying to sell the company. On Monday, amid reports of factors cutting Barneys off and vendors worried about shipping and wondering about Barneys’ immediate future, the luxury retailer had no further
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