Barneys Goes Bankrupt; Long Island Store Among 15 To Close

RIVERHEAD, NY — Bye bye, Barneys. The ritzy retailer Barneys New York has filed for bankruptcy and will shutter 15 stores, including its sole location on Long Island, 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 five concept stores and seven warehouse locations. The warehouse store at the Tanger Outlets in Riverhead is among those slated to close.

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.

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.

Written by Noah Manskar