Barneys seeks bankruptcy protection, to close most stores

NEW YORK — Barneys New York is filing for Chapter 11 bankruptcy protection, the latest retailer to buckle as shoppers move online.

The iconic clothier founded almost a century ago will keep the doors open at its 10-story Madison Avenue store, but it has secured $75 million in financing to pay employees and vendors as it seeks a buyer.

Stores in Chicago, Las Vegas and Seattle will close along with 12 concept and warehouse locations.

Stores in Beverly Hills, California, San Francisco and Boston will remain open, as well as two warehouse locations in New York and California. However, the company said Tuesday it’s reviewing all store leases.

Barneys, controlled by New York hedge fund Perry Capital, listed more than $100 million in debt and more than $100 million in assets in its bankruptcy filing in the Southern District of New York.

The picture for most traditional retailers grows worse by the year.

The number of retail stores closed in the U.S. this year has already surpassed the total number in 2018, according to Coresight Research, which expects 12,000 will be shuttered in 2019. Coresight said 7,567 retail stores have closed this year, compared with 5,864 in all of 2018.

The escalating trade war between China and the U.S. has intensified that pressure, leaving clothing companies scrambling to find new routes and suppliers. Over the past year, the retail sector has consistently bled jobs.

A strong economy has traditionally boosted luxury sales but like retailers across the spectrum, Barneys and other high-end stores have struggled to entice people through the door. They’re seeing younger shoppers migrate online to sites like Net-a-Porter, which offers same-day delivery for luxury goods, or resale sites like The RealReal.com.

Nordstrom has reported slowing sales. And Neiman Marcus Group, which also operates Bergdorf Goodman, posted a loss and a sales decline in its most recent quarter.

After 104 years, Lord & Taylor’s flagship store on Fifth Avenue locked its doors in January and sold the property to WeWork.

And with sales growing weaker, cost pressures have increased for retailers.

SPENCER PLATT / GETTY IMAGES New York-based retailer Barneys has filed for Chapter 11 bankruptcy. Barneys and other high-end stores have struggled to entice people through the door.