Supplier BulletinNov 21, 2024
Tasha R Releases 2025 Labbelle Lab Diamond Jewelry CatalogSponsored by Tasha R
MajorsJul 24, 2019
Barneys May Be On The Brink of Bankruptcy, Reports Say
The rent on the retailer’s Madison Avenue flagship nearly doubled recently, from $16 million annually to $30 million.
Barneys recently opened The High End, a “luxury cannabis lifestyle and wellness concept shop,” on the fifth floor of its Beverly Hills flagship. The luxury retailer is reportedly considering filing for Chapter 11 bankruptcy protection after rent on its New York store nearly doubled.
New York—Luxury department store chain Barneys New York Inc. may soon seek bankruptcy protection as it combats soaring rents and a shift in consumer tastes, according to a Reuters report published earlier this month.
The retailer has managed to weather changing tastes in its 100-year-long history, most recently opening a luxury cannabis-themed shop in its Beverly Hills location, but a rent hike has been weighing heavily on Barney’s balance sheet.
The rent on its 660 Madison Ave. flagship jumped from $16 million to $30 million a year after a city arbitrator approved a rent hike by landlord Ashkenazy Acquisition when Barneys’ lease expired in January 2019, as per a report by The Real Deal.
The building was sold to Ashkenazy Acquisition as a result of the company’s Chapter 11 filing in 1996, following a dispute with its partner Isetan, a Japanese department store chain.
At the end of the legal proceedings, Isetan held the titles to the Barneys stores in New York as well as in Chicago and Beverly Hills, The New York Times reported.
When Isetan severed ties with Barneys in 2001, the buildings in these locations were sold to Ashkenazy Acquisition for $180 million.
Ashkenazy leases space in a slew of notable buildings, including The Plaza Hotel in New York City, Faneuil Hall in Boston and Union Station in Washington, D.C.
Barneys’ 20-year lease set the annual rent at $16 million with a clause that stated the rent could be raised to fair market value when the lease expired. Fair market value was determined to be $60 million, which was then slashed in half to $30 million by the city arbitrator.
“It’s crazy to double the rent; half of Madison Avenue is empty,” Peter Marino, the architect who designed the Madison Avenue store, said in an interview with The New York Times.
Lord & Taylor, Henri Bendel, Calvin Klein and Ralph Lauren have left the area in recent years, with more retailers said to be in talks to follow.
Barneys is reportedly exploring its options with the help of law firm Kirkland & Ellis, consultants MII partners and investment bank Houlihan Lokey, sources said. If the company chooses not to file for Chapter 11 bankruptcy protection, its options include renegotiating its leases or bringing in a strategic advisor.
Barneys declined to comment directly on the bankruptcy rumors.
In a statement emailed to National Jeweler Tuesday, a company spokesperson said: “Our board and management are actively evaluating
opportunities to strengthen our balance sheet and ensure the sustainable, long-term growth and success of our business.”
The spokesperson also noted that Barneys is moving forward with planned store openings at American Dream, the new mega-mall in New Jersey, and at Bal Harbour Shops in Miami Beach.
Barneys operates 22 stores in the United States as well as five Freds cafes and Gene’s Cafe, located in its Madison Avenue flagship.
The spokesperson also noted that Barneys is moving forward with planned store openings at American Dream, the new mega-mall in New Jersey, and at Bal Harbour Shops in Miami Beach.
Barneys operates 22 stores in the United States as well as five Freds cafes and Gene’s Cafe, located in its Madison Avenue flagship.
More on Majors
The Latest
AuctionsNov 21, 2024
Gold Watch Gifted to Titanic Rescue Ship Captain Sells for $2MThree Titanic survivors presented him with the personalized Tiffany & Co. timepiece about a year after the tragedy.
CollectionsNov 21, 2024
Channel Elphaba in Muse’s ‘Have a Heart x Cynthia Erivo’ CollectionCynthia Erivo chose Dreams of Hope, an organization dedicated to empowering LGBTQA+ youth, as the charity for this year’s collection.
Brought to you by
Navigating Cybersecurity: Essential Guidance for JewelersFrom protecting customer data to safeguarding inventory records, it's crucial to learn how to tackle cybersecurity challenges.
IndependentsNov 21, 2024
Mary Moses Kinney Is Now Part of The Edge’s Team Kinney, who spent nearly 30 years at IJO, has been hired to head Abbott Jewelry Systems’ new virtual marketplace.
Weekly QuizNov 21, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CrimeNov 20, 2024
Sotheby’s to Pay $6.25M Settlement to NY State for Alleged Tax FraudThe auction house was accused of helping clients avoid paying taxes on millions of dollars’ worth of art purchased from 2010 to 2020.
Events & AwardsNov 20, 2024
Kering Debuts New Jewelry Award With Sustainability FocusThe four finalists will present their pieces at the 2025 JCK Las Vegas show.
Brought to you by
Enhance Your Expertise with IGI’s In-Person Courses in NYCThis fall, sharpen your skills in jewelry grading, quality control and diamond assessment.
CollectionsNov 20, 2024
Pamela Love Channels Surrealist Artists in New CollectionThe “Camera Oscura” collection showcases earring designs celebrating female Surrealist artists Claude Cahun and Leonor Fini.
Policies & IssuesNov 20, 2024
Columbia Gem House Raises $10K for Reforestation EffortsThe money will fund the planting of 10,000 trees in critical areas across Oregon, Arizona, Montana, and other regions.
Events & AwardsNov 20, 2024
The Jewelry Symposium Opens Registration, Scholarship ApplicationsThe event centered on advancing jewelry manufacturing technology will return to Detroit in May 2025.
CrimeNov 19, 2024
Woman Killed in Armed Robbery of Sacramento Jewelry StoreLocal reports identified the woman as the wife of the jewelry store owner.
AuctionsNov 19, 2024
‘A Tsar’s Treasure’ Fetches $2.9M at Sotheby’s Jewelry SaleA collection of pieces owned by Ferdinand I, the first king of modern Bulgaria, and his family, blew away estimates in Geneva last week.
MajorsNov 19, 2024
Trove Opens First US Flagship in NYCThe Australian jewelry box brand’s new West Village store will showcase new jewelers each month through its Designer in Residence program.
CollectionsNov 19, 2024
Snoop Dogg’s New Jewelry Collection Is All About Love“Lovechild” was created in partnership with Carolyn Rafaelian’s Metal Alchemist brand.
EditorsNov 18, 2024
Q&A: Helzberg CEO Brad Hampton on the Jeweler’s RebrandHampton discussed how Helzberg is improving the customer experience and why it was inspired by the company formerly known as Dunkin’ Donuts.
Policies & IssuesNov 18, 2024
Reciprocity Jewels Returns to NYC Jewelry WeekThe group will host several curated events and an exhibition of designer jewelry made with Peruvian gold traceable to the miners’ names.
CollectionsNov 18, 2024
Dolly Parton Shines in Collaboration with Kendra ScottThe collection honors the 50th anniversary of Dolly Parton’s “Love is Like a Butterfly” song, which shares a birth year with Kendra Scott.
Events & AwardsNov 18, 2024
IGI Jewelry Design Competition ReturnsThis year’s theme asks designers to take inspiration from classic fairy tales.
EditorsNov 15, 2024
Why Fine Jewelry Belongs at New York Comic ConSenior Editor Lenore Fedow makes the case for why more jewelers should be appealing to nerds at the annual event.
CollectionsNov 15, 2024
Marie Lichtenberg Battles Counterfeits with New ‘Raiz’in Scapular’ DesignsThe latest “Raiz’in” drop showcases a newly designed “Scapular” necklace and donates a portion of the proceeds to Make-A-Wish France.
WatchesNov 15, 2024
Piece of the Week: Citizen’s Commemorative Pocket WatchNo. 1 out of 100, the timepiece was created to mark Citizen’s 100th anniversary and will be auctioned off at Sotheby’s next month.
Recorded WebinarsNov 15, 2024
Watch: 10 Tips to Keep Your Jewelry Store Secure On the latest episode of “My Next Question,” two experts share best practices for store security during the holidays and year-round.
AuctionsNov 14, 2024
18th-Century Diamond Necklace Sells for Nearly $5M Sotheby’s sold the necklace, which potentially has ties to Marie-Antoinette, for $4.8 million to a woman bidding via phone.
MajorsNov 14, 2024
Saks Fifth Avenue Cancels Holiday Light DisplayInstead of its usual elaborate display, the store will illuminate its façade and frame the windows to highlight its flagship’s architecture.
WatchesNov 14, 2024
Grand Seiko Partners With Ben Bridge on First Hawaii Store The new Grand Seiko boutique is located in Honolulu’s Waikiki neighborhood.
SourcingNov 13, 2024
Gem Legacy Adventures Announces 2025 Trip Eleven spots are available for travelers to visit Northern Tanzania and Southern Kenya from July 25 to Aug. 4.
