High real estate costs Barnes Department Store in New York will file for bankruptcy protection

CnBC reported on Aug. 5 that barneys New York is preparing to file for bankruptcy protection this week.

The troubled luxury department store chain is in a deal with lenders that will provide it with enough financing to give it time to find buyers, people familiar with the matter said. Because the negotiations were conducted privately, the people asked for anonymity.

People familiar with the matter said Barnes was close to striking deals with Gordon Brothers and Hilco Global, two companies that specifically sell assets for troubled companies. A person familiar with the matter said the deal would give Barneys 60 days to find a buyer in bankruptcy court. If Barnis can't reach an agreement, it will have to liquidate.

It is reported that Barnes Department Store also intends to close most of its stores. One of the people familiar with the matter said the group was looking for buyers in seven core locations across the country. The company's main business is to open stores and stockpile stores on Madison Avenue in New York and Beverly Hills in California.

"The Board and management of the Barneys New York boutique will continue to work constructively with multiple companies and are committed to reaching a mutually agreeable resolution to strengthen our business." A spokesman for the Barnes Boutique said in an emailed statement.

Cnbc reported in late July that Barneys had begun filing for bankruptcy financing, but the filing was still delayed. The company has been looking for ways to avoid bankruptcy to help deal with the liquidity crunch triggered by rising rents for its Manhattan flagship store.

These include Nordstrom, Hudson's Bay Company, Penny's (j.c. Many department stores, including Penney Company Inc.) and Macy's, struggle as consumers buy clothing online or directly from branded stores. Meanwhile, uy retail, which was once untouched by online shopping trends, is facing increasing competition from new competitors like net-a-porter.

With more than a dozen stores of the same name in New York, California, Illinois, Massachusetts, Nevada, Washington and Pennsylvania, Barneys is under additional pressure due to exorbitant real estate costs.

Barnes' flagship store, located on Madison Avenue in Manhattan, New York, is owned by an Ashkenazi Jewish acquisition company, and its January sales jumped from around $16 million to around $30 million, nearly offsetting earnings before interest, taxes, depreciation and amortization.

The bankruptcy filing filed by Barneys this week will be the company's second bankruptcy filing. As early as 1996, the company filed for bankruptcy protection for the first time to protect the company from creditors. (Compiled by Zhang Tian Xixi)