Barneys New York Inc has filed for chapter 11 bankruptcy.
The luxury chain department store filed for bankruptcy this morning, with the news breaking this afternoon.
The store put itself up for sale earlier this year after struggling to make profits since the rise in popularity of online retailers and soaring real-estate prices.
According to Associated Press, the store will be closing some locations, including Seattle, Las Vegas, and Chicago. In addition, a dozen “concept and warehouse locations” will also be shut down.
Its stores in New York, San Francisco and Boston will remain open for the time being.
According to RTÉ, CEO of Barneys, Daniella Vitale said: “Barneys New York Board and management team have taken decisive action by entering into a court-supervised process, which will provide the company the necessary tools to conduct a sale process, review our current leases and optimise our operations.”
For the past number of weeks, Barneys has been looking for a buyer or investor as rent in New York rose from $16 million to $30 million.
In a statement, it was announced that the luxury store received $75 million in financing from affiliates of Hilco Global and the Gordon Brothers Group to help it keep going as it proceeds through the bankruptcy court.
