By  on August 13, 2019

Last week in bankruptcy court, Barneys New York’s attorneys heralded a roughly $218 million financing arrangement that they said would better position the luxury retailer for a sale, and which they said showed enduring confidence in the brand. 

But vendors shipping to Barneys during the bankruptcy proceedings might be treading with caution, as its new debtor-in-financing agreement envisions paying off all its pre-petition secured debt, with some exceptions, according to court filings on Friday. Given the retailer’s considerable debt — including at least $190 million in secured obligations — as well as its ongoing lease and other expenses during the bankruptcy process, vendors may find themselves in a tenuous position, said bankruptcy attorneys. 

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