(CNN) — Barneys reportedly could turn into the most recent brick-and-mortar retailer to file for chapter.
Reuters, citing unnamed sources, reported Saturday that the corporate “has not but made a ultimate determination on whether or not or to not search chapter safety, and is weighing different attainable options for addressing excessive rents which might be straining its enterprise.”
The sources advised Reuters that submitting for chapter safety may assist alleviate the strain of high-priced leases.
In a press release to CNN Enterprise, the luxurious division retailer, formally known as Barneys New York, mentioned it’s “actively evaluating alternatives to strengthen our stability sheet and make sure the sustainable, long-term development and success of our enterprise.” The corporate didn’t say whether or not these choices included chapter.
Barney’s has a number of areas in the USA, together with one in Boston’s Copley Place that opened in 2006. However its headquarters and flagship retailer line the realm round New York’s Fifth Avenue, which for months has been emptied of distinguished luxurious retailers as they flee excessive rents and shifting shopper tastes.
Calvin Klein, Ralph Lauren, Lord & Taylor, Henri Bendel, and, reportedly, Versace are leaving the once-coveted buying vacation spot in Manhattan.
Excessive-end manufacturers used their shops on the upscale New York blocks to draw rich residents and vacationers. Every of the businesses leaving Midtown faces its personal set of challenges. However on the whole, the worth of cavernous flagship shops is coming beneath strain as extra prospects store on-line and on their telephones.
Barneys additionally has a number of areas in Los Angeles, together with within the upscale Rodeo Drive space, the place rents have additionally reportedly climbed.
As Barney’s evaluates its footprint, the corporate mentioned it’s going to additionally open new storefronts in New Jersey’s American Dream retail complicated and in Miami Seashore. It additionally has a brand new retailer in Las Vegas and it lately introduced the launch of a “hashish life-style” store in Beverly Hills known as “The Excessive Finish.”
“We proceed to evolve our technique and enterprise mannequin for the advantage of all of our stakeholders by means of our forward-thinking and uniquely trendy strategy,” the corporate mentioned in a press release.
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