Barneys Goes Bankrupt; Beverly Hills Store To Remain Open

BEVERLY HILLS, CA — The ritzy retailer Barneys New York has filed for bankruptcy and will shutter 15 stores across the U.S., the company announced Tuesday. However, five flagship stores, including two in California — Beverly Hills and San Francisco — are expected to remain open.

The other three flagship stores expected to keep their doors open are in New York City and Boston.

The chain will shutter shops in Las Vegas, Seattle and Chicago, along with five concept stores and seven warehouse locations. The warehouse store in Livermore will remain open, along with one in Central Valley, New York.

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.

Patch editors Noah Manskar and Bea Karnes contributed to this story