Barneys looks to survive as debts mount

September 04, 2019

Patrick Collins was quoted in Crain’s New York Business regarding Barneys New York and its bankruptcy filing.

Below is an excerpt from the article.

Bankrupt retailer Barneys New York was back in court Wednesday, aiming to finalize the debtor-in-possession financing needed to fund its reorganization.

The court date followed a whirlwind period marked by a report of a potential buyer and pushback from creditors over the luxury retailer’s $217 million DIP financing deal with investment bank B. Riley Financial and hedge fund Brigade Capital Management.

The case—which began when Barneys filed a voluntary Chapter 11 petition Aug. 6—took a dramatic turn late last month as the creditors’ committee objected to the terms of the financing package, which had received interim approval.

As of July 6, Barneys had assets of $457 million and liabilities of $377 million, according to court papers. Entering Chapter 11 protection allows a retailer to break leases, noted Patrick Collins, a partner in the bankruptcy and restructuring practice at Farrell Fritz, which is advising a Barneys creditor. Barneys plans to shutter 15 stores to focus on five flagships, including the ones on Madison Avenue and in Chelsea, two outlet stores and e-commerce.

To read the full article, please click here.



  • Related Practice Areas: Bankruptcy & Restructuring
  • Featured Attorneys: Patrick T. Collins
  • Publications: Crain’s New York Business