Barneys New York Files For Bankruptcy, Will Shutter 15 Shops

NEW YORK — Bye bye, Barneys. The ritzy retailer Barneys New York has filed for bankruptcy and will shutter 15 stores across the U.S., the company announced Tuesday.

The chain will keep its Manhattan flagship stores but shutter shops in Las Vegas, Seattle and Chicago along with seven outlets and five smaller stores — including its Cobble Hill location.

The storied firm indicated that high rents were partly to blame for its financial woes.

"Like many in our industry, Barneys New York's financial position has been dramatically impacted by the challenging retail environment and rent structures that are excessively high relative to market demand," Daniella Vitale, the firm's president and CEO, said in a statement.

The closings come as Barneys starts the Chapter 11 bankruptcy process in Manhattan federal court. Going through bankruptcy under court supervision will help the company pursue a sale while continuing to serve customers, Vitale said.

Barneys said it has locked down $75 million to help it meet its financial obligations from two financial services companies, Hilco International and the Gordon Brothers Group.

In addition to the Brooklyn shop, Barneys says it will shutter its Philadelphia location and California stores in Los Angeles, Glendale and Santa Monica. The seven outlet stores slated to close include the Tanger Outlets location in Riverhead, Long Island.

Five Barneys stores will remain open in addition to its Madison Avenue and Chelsea locations, the company says: The flagships in Beverly Hills, San Francisco and Boston, and two warehouse stores in the Hudson Valley and Livermore, California.

Barney Pressman opened the original Barneys boutique at West 17th Street and Seventh Avenue in 1923. The store there stayed open until 1993, when the current flagship opened at the corner of Madison Avenue and East 61st Street.

This isn't the first time Barneys has gone bankrupt. The company declared bankruptcy in 1996 as it battled with a Japanese investor, The New York Times reported then.