As the buyer of the luxury retailer brand negotiates with the store’s landlord, Barneys New York’s flagship store on Madison Avenue in Manhattan will stay open for at least another year in a smaller form. Fred’s, the store’s famous eatery, will also stay open, Reuters reported.
Ashkenazy Acquisition Corp. President Daniel Levy said, according to the outlet, “We have come to terms with Authentic Brands Group, Barneys’ new owner, to keep the Madison Avenue store open in a smaller footprint for the next 12 months while we continue to explore a longer-term solution.”
Barneys had filed for bankruptcy protection back in August, reportedly noting that rent hikes were a factor. Levy, however, noted that the store makes approximately $20 million in annual profitability for the retailer, despite a recent rent raise. Authentic Brands bid about $271 million for Barneys, saying that it would make the Madison Avenue location into a pop-up shop.
At the same time, Great American Group and Tiger Capital Group noted in a press release that store closings would soon start at five flagship Barneys New York locations and Barneys Warehouse locations. And beginning next week, exclusive private sale events are in the works for the most loyal Barneys shoppers. The liquidation sale “is expected to last for a limited time only as the firms work to quickly sell through all inventory during the upcoming holiday season.” The release also noted that “gift cards may be redeemed until Nov. 7, 2019 in accordance with the bankruptcy court order.”
Barneys’ flagship locations are in New York City (one on Madison Avenue, the other in Chelsea), Los Angeles, San Francisco and the Back Bay neighborhood of Boston. Its warehouse stores are located in Central Valley, New York and Livermore, California. The release also noted that shoppers can participate in the sale online by visiting BarneysWarehouse.com and Barneys.com.