Barneys New York Secures a Larger Capital Infusion to Pay Bills, Reorganize

August 7, 2019Barneys New York has received a new lifeline, less than one day after the iconic luxury fashion retailer filed for Chapter 11 bankruptcy protection.In a last-minute announcement late Tuesday at the start of the company's first bankruptcy hearing, attorneys for Barneys said the company received a larger capital-infusion offer, extended by Brigade Capital Management and B. Morris, for the Southern District of New York, said this funding could replace the retailer's previously secured $75 million from Hilco Global and the Gordon Brothers Group.The judge said Barneys initially could use $75 million of the new funding, which will go to pay employees, vendors, and other creditors, while giving the company more breathing room to operate and rethink its business.“We are pleased to partner with Brigade Capital and B. She said the money will allow the store to "continue to offer a unique customer experience, strengthen our relationships with our vendors, and conduct a sale process to position Barneys New York for the long-term.” According to Bloomberg, the retailer listed liabilities in bankruptcy court papers of $200 million, with $800 million of revenue in 2018. “Like many in our industry, Barneys New York’s financial position has been dramatically impacted by the challenging retail environment and rent structures that are excessively high relative to market demand,” said Vitale in a news release before the bankruptcy hearing.