2019-08-06 — komonews.com
``Barneys New York is filing for Chapter 11 bankruptcy protection, the latest retailer to buckle as shoppers move online.
The iconic clothier founded almost a century ago will keep the doors open at its 10-story Madison Avenue store, but it has secured $75 million in financing to pay employees and vendors as it seeks a buyer.
Barneys, controlled by New York hedge fund Perry Capital, listed more than $100 million in debt and more than $100 million in assets in its bankruptcy filing in the Southern District of New York.
A strong economy has traditionally boosted luxury sales but like retailers across the spectrum, Barneys and other high-end stores have struggled to entice people through the door. They're seeing younger shoppers migrate online to sites like Net-a-Porter, which offers same-day delivery for luxury goods, or resale sites like The RealReal.com. Moreover, wealthy shoppers are going directly to luxury brands' online sites or shops.
Nordstrom has reported slowing sales. And Neiman Marcus Group, which also operates Bergdorf Goodman, posted a loss and a sales decline in its most recent quarter.
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