HITTING BOTTOM
Barneys’ end has the look of low-rent district
Barneys is going out of business — and for some shoppers, the situation is too tacky to stomach.
The bankrupt luxury mecca’s flagship on Madison Avenue has been plastered with garish, orange-and-yellow signs hawking discounts of 50 percent and more — a scene that, except for the sky-high prices, looks more like Sears or Kmart than Barneys New York.
“Everything 30% to 50% off ” blared a sign overlooking the outerwear section — just inches away from the chic Prada logo stencilled on the wall. “Get an additional 20% off entire purchase,” advised a pink, Xeroxed flyer stuck on top of it, adding “Today only!”
While shoppers riffled through piles of silk scarves and cashmere sweaters for deals, insiders say the liquidation of the chic luxury emporium hasn’t gone smoothly since it began Nov. 5.
With just a few days until Christmas, sources say more inventory remains than anyone expected. Some partly blame paltry discounts of 5 and 10 percent that kicked off the clearance sales, disappointing bargain hunters.
Others, meanwhile, fret that Barneys’ deep-pocketed clientele have fled the scene for shops that are more chic.
“The long-term, full-price customer is not a bargain hunter,” said Gary Wassner, CEO of apparel lender Hilldun Corp. “That shopper who can afford to buy somewhere else will.”
The bigger, even scarier problem now: Even at 30 to 50 percent off, most Barneys stuff feels out of reach.
“Was $1,890 — You Pay $1,323,” screamed a tag on a black canvas tote by Yves Saint Laurent, the numbers scrawled by hand with a felttip pen.
“It’s challenging [for the liquidators] because the regular customer has gone away,” said a source close to the situation. “Barneys is attracting a new customer now and it’s a little expensive for them.”
On Friday, one shopper who identified herself only as Sarah admitted she was entering Barneys for the first time despite having lived in the Big Apple for a decade.
“I’ve never set foot in the store,” she said. “We’ll see if there’s anything I can afford.”
Others identified themselves to The Post as occasional Barneys’ shoppers who would visit the store a few times a year.
“It’s very sad that it’s closing,” said Nicole, who said she came to the store a couple of times annually. “The sale is a mix of incredible finds and sub-par stuff that looks like they just dumped into the store to fill it up.”
The lack of enthusiasm is bad news for B. Riley Financial, whose liquidator arm Great American Group bought millions of dollars worth of Manolo Blahnik shoes, Zac Posen blouses and Chanel cosmetics after Barneys filed for bankruptcy protection in August.
Sources said the liquidator took a hit in October, when Barneys’ 1,600 employees were offered first dibs on the merchandise, including 60 percent discounts. Sales associates, meanwhile, are getting unusually high commissions, between 7.5 percent and 9 percent, according to a source.
“[They] have seen commissions go up in line with the high volume of sales and traffic to the stores,” a B. Riley rep said, denying the firm was getting squeezed.
“Since the start of the sale, there has been a diverse range of shoppers — from the traditional high-end Barneys customer to the more price-conscious consumer,” the rep added. “The deeper discounts have been well-received by customers across the board.”
Late last week, a shopper named Maria, who told The Post she was 51, said she came to “say goodbye.” She first set foot in the Madison Avenue flagship when she was 24, when the store seemed “intimidating and like a museum.” Before heading out, she said, she scored a pair of diamond, hoop earrings “at a great price.”