Barneys, owned by hedge fund manager Richard Perry is apparently exploring bankruptcy after a steep increase in its rent at the Madison Avenue flagship starting in January 2019. However, the company providing maintenance, cleaning and housekeeping has suspended its work with the retailer which owes it over $500 000. The store is still operating with merchandise being delivered but some toilets are closed and rubbish is not being taken out.

In the 1960s and 1970s, the store shifted upmarket to offer new luxury brands. An EBITDA of $ 37.9m in 2017 on sales of $829m was expected to be up last year, making an operating profit of 4.6%. Online sales have been increasing, up 19% on the year, but are still short of projections, and average order value is down. The tipping point has been the 72% increase in rent in New York.

read bof article: What Pushed Barneys to the Edge