In news that shocked the global fashion set, and seemed to foreshadow a changing shopping landscape, iconic department store Barneys New York, announced it was going to file for Chapter 11 bankruptcy protection earlier this year. The chain listed estimated liabilities of between $100 million and $500 million and sought to avert bankruptcy by finding a partner or buyer, according to the Business of Fashion.
But, shoppers got a glimmer of hope from the store’s Instagram, where it posted a note informing everyone that the store is “here to stay.”
“We are not closed,” reads one of the images in the store’s latest gallery post. The text is over the shop’s famous New York façade, along with another bold statement: “Barneys til I’m dead.” Both were in all capital letters and the store’s current throwback retro font.
“Like a lot of us out there, we have had our share of financial struggles. But, despite what you may have heard, Barneys is here to stay,” the note begins. “Behind these doors you can still find the best date night heels, CBD moisturizers, bar mitzvah suits, it-bags, little black dresses, statement sneakers, and gifts for your chic aunt that money can buy in New York City.”
After Barneys’s announcement back in August, there were reports that locations in Chicago, Las Vegas, and Seattle would close. The focus would shift to the stores on Madison Avenue, downtown Manhattan, Beverly Hills, San Francisco, and Copley Place in Boston. Barneys post doesn’t clarify what’s going to happen with each individual store.
“To buy, to behold, to splurge, to strut, to indulge, to look fabulous are basic human instincts — and sometimes they can get us in trouble,” the note continues, maybe offering a little bit of insight to how the store managed to get itself into its current state of financial instability. “Nevertheless, we are open for you. And this is not our last season.”
CNBC noted that Barneys had raised “$75 million to support a sale process” and that without a serious buyer, the store would have to liquidate. Excessive rents were one reason that analysts blamed for the store’s situation, though the site notes that Barneys has faced similar scenarios in the past.
