Barneys Bidding Starts, and It’s a Bet on the Future of Shopping

Barneys reported sales of about $790 million last year, with 30 percent of that coming from e-commerce, according to its bankruptcy filing. The company, which had 2,300 employees when it filed for bankruptcy, said that the 15 stores it planned to close posted losses of $14.2 million last year.

The luxury chain’s challenges came to a head this year, culminating in “a liquidity crisis” by the summer. Its rent obligations jumped by $12 million while sales plummeted and vendors started refusing to ship inventory unless they were paid cash on delivery, according to the retailer’s bankruptcy documents.

Whether such concerns are resolved by the potential new owners’ plans is an open question. Others mentioned as potential bidders include Hilldun Corporation, the fashion financing company, and Mercury Group, a Russian retail and real estate group that owns TsUM department store and the Phillips auction house, according to two people with knowledge of the plans, who said they were not authorized to speak publicly.

Article source: https://www.nytimes.com/2019/10/15/business/barneys-bankruptcy-bidders.html?emc=rss&partner=rss