UPDATED 8/6/19 10:15 a.m. ET: Barneys New York Inc. has now filed for bankruptcy protection from creditors, per a Business of Fashionreport.
Listed estimated liabilities are said to be between $100 million and $500 million, with the Chapter 11 move allowing for the brand to keep the business side rolling while dealing with matters of debt.
See original story from 7/26/19 below.
The raising of bankruptcy filing-related financing is reportedly what Barneys New York is currently up to, at least according to multiple reports.
Bloomberg, for example, said Thursday that the company has been talking with existing lenders (Wells Fargo and others) regarding a fresh loan to keep the business going should a bankruptcy filing go down. More specifically, these talks are "in early stages" and have centered on potential terms of a debtor-in-possession loan that would float store operations while Barneys officials ironed out landlord and lender agreements in court.
The possible filing, per multiple sources, could come as early as next week. While a Wells Fargo rep declined comment to Bloomberg, a Barneys rep said via email that the company is working "closely with all of our business partners to achieve the goals we've set together and maximize value."
Barneys presently boasts an estimated $250 million in debt obligations. The Madison Avenue shop's rent was also raised dramatically this year.
A separate report from CNBC, also filed Thursday, echoes many of these sources' claims and adds that options for the company have dwindled in recent days. However, their sources do suggest that Barneys is still simultaneously exploring options to avoid bankruptcy altogether.
The company is not alone in its financial hurdles, with many former retail giants experiencing similar difficulties amid a new shopping climate that’s less reliant on in-store experiences and traditional brand-to-consumer models.
