Barneys New York luxury retailer has just received a lifeline.
Barney spokesman said in a statement, "Barneys New York has a long-standing relationship with Wells Fargo, and our most recent agreement is the extension of our current loan agreement with Wells Fargo since 201
The company recently announced it would sell high-quality cannabis items in its stores.
Barneys was assisted by Perry Capital, the fund led by Richard Perry, Ronald Burkle, since 2012. This deal, structured as a debt-for-equity swap, helped the Tony retailer avoid bankruptcy. The trade rattled on, however, when Perry closed his fund four years later, citing the headwind of the industry and the market.
Perry Capital existed since then largely as a "zombie fund" in which he owned Barneys but did not invest more in money. After the deal with Wells Fargo and TSSP, Perry Capital will continue to own the retailer.
Barneys, like many of his peers, has difficulty tackling the rise of online shopping and brands that want to sell directly to their buyers rather than going through a third-party business.
Luxury goods brands, including coach owner Tapestry and jeweler Tiffany, must be pressured. This is the slowdown they have seen as Chinese tourist spending in the US. According to consulting firm Bain, Chinese buyers are expected to account for 46 percent of the global luxury market by 2025. This ties the luck of the luxury market closely with the economic fluctuations of the Chinese economy.
Online luxury distribution continues to grow as premium websites such as Farfetch have developed services and technologies that can replicate high-end online shopping experience for which brands like Chanel are known. London-based Farfetch, listed on the New York Stock Exchange last year rose 47 percent this year and has a market capitalization of $ 8 billion.
By 2025, online shopping will make up a quarter According to Bain, the luxury market has risen by 10 percent today.
Against this backdrop, Manhattan's luxury retail landscape continues to evolve as retailers no longer use the city's expensive midtown property as a marketing tool. Ralph Lauren closed his Fifth Avenue store in 2017, while Lord & Taylor of Hudson's Bay Company closed Fifth Avenue's flagship store in January.
Outside Midtown, new openings continue. Saks Fifth Avenue opened a women's shop in the Brookfield Place of Battery Park in 2016, before closing down about two years later. A men's business is still open. In March, the upscale Hudson Yards shopping district on the west side of the West opened with the luxury of Neiman Marcus as an anchor. In the same month, the retailer signed a deal with its lenders to extend its $ 2.5 billion of its nearly $ 5 billion debt burden.
Barneys dates back to 1923 when Barney Pressman opened a discount clothing store for men on Seventh Avenue and 17th Street. In the 1960s, Barney's son Fred helped transition from a discount store to a luxury retailer. Barneys soon embossed in New York luxury fashion, building his footsteps in menswear and introducing designers like Giorgio Armani.
Barneys has more than 10 eponymous stores in New York, California, Chicago, Massachusetts, Las Vegas, Seattle and Pennsylvania. It also has a number of Barneys Warehouse Outlet Stores and Fred's Restaurants.
In 2017, she appointed her former Chief Operating Officer Daniella Vitale as CEO.
People demanded anonymity because the information is confidential. Wells Fargo and TSSP declined to comment. Perry Capital could not be commented.