ISETAN SEEKS TO PARRY MOVE BY BARNEYS
NEW YORK — Isetan Co. Ltd. has moved to dismiss a pending arbitration filed by Barneys that seeks to terminate a license held by Isetan to operate Barneys stores throughout Asia.
Barneys claims the license was terminated on Sept. 23.
According to an Isetan attorney, the bid to dismiss the arbitration charges that Barneys acted in bad faith. The licensing agreement, said the attorney, requires the parties to attempt resolution of their differences before filing for arbitration.
In another development, Barneys and Isetan have reached a short-term agreement allowing the retailer to continue its monthly interim rent payment of $750,000 until the end of June. Barneys had been paying $750,000 under an agreement that expired at the end of March.
John Brincko, Barneys’ president and chief operating officer, said in last week’s hearing that the retailer’s cash flow going forward is positive, but then admitted that Barneys might not be able to pay July’s interim rent payment.
Last week’s hearing was on Barneys’ request for up to $10 million in payment of break-up fees and expenses, as well as its request for an extension of time to file a reorganization plan. The bankruptcy judge is expected to rule on those issues at a hearing today.