Retail Refugees


“Luxury in the Tank” means a bankrupt Barneys?
September 2, 2009, 11:17 am
Filed under: Market Info, Stores | Tags: , , ,

According to reports, Barneys (the NY-based luxe department store) could be making its second trip to bankrupcty court in the near future.  Their other option would be a buy out from Canadian department store chain Holt and Renfrew.  Daily Finance reports, “A spokeswoman said the Toronto-based chain would not comment on the report, which claimed that Holt & Renfrew had approached the hedge fund Perry Capital LLC about a deal. Perry Capital put together the $942 million deal in which Barney’s was sold in 2007. Holt & Refrew, a upscale chain akin to Bloomingdale’s, could be a good fit for Barney’s, which has struggled in the recession, like other high-priced stores with large apparel inventories.

“The bottom line is luxury is in the tank,” said Howard Davidowitz, chairman of Davidowitz & Associates, a New York-based retail consulting and investment banking firm.

“We’re in the biggest trade down effect in the history of retailing,” he said. The results posted this year by retailers including Neiman Marcus, Saks Fifth Avenue and others all point to a steep fall in luxury retail due to the recession. “Barney’s is in a state of collapse, along with all the luxury retailers,” he said.”

https://i1.wp.com/nymag.com/images/2/daily/intel/07/06/22_barneys_lgl.jpg

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