Barney's To Downsize Flagship Store, Report Says

MIDTOWN MANHATTAN, NY — The Barney's flagship store in Midtown Manhattan may be the latest New York City retail institution to downsize, according to reports.

Barney's is considering cutting at least half of its footprint in its Madison Avenue and East 61st Street store and giving back as many as five of its nine floors in the building to its landlord, the New York Post first reported.

"It’s clear that the space is too big," an anonymous source who is "familiar with the negotiations" told the Post.

The floors given up by Barney's may eventually be converted into office or apartment spaces, according to the report. Barney's currently pays about $44 million every year to rent its space in the building following a legal fight with its landlord over a rent hike. The store signed a 10-year lease extension in January, the Post reported.

Downsizing or abandoning glitzy flagship stores of Madison and Fifth avenues is the current trend among New York City retailers. Lord & Taylor closed its flagship store in 2018 after selling the building to WeWork for $850 million.