BARNEYS ASKS COURT APPROVAL FOR MOVE OF HEADQUARTERS
NEW YORK — Barneys Inc., in a bid to save costs and increase operating efficiencies, is seeking court approval to move its headquarters to Fifth Avenue and 40th Street.
Under the plan, Barneys current headquarters at 106 Seventh Avenue, near 17th Street, will move to 575 Fifth Avenue, occupying 46,000 square feet on two floors.
In addition, Barneys wants to move its central alterations shop at 106 Seventh Avenue and its display shop at 132 West 17th Street to a 33,000-square-foot facility at 450 West 33rd St. If approved, the moves will take place in January. A hearing is set for Nov. 13.
Irvin A. Rosenthal, Barneys’ senior vice president of administration, said the current office is overpriced and the move will cut about $2 million in annual occupancy costs. He also said the new site would be more efficient, noting that current headquarters have six floors served by one elevator.
If Barneys fails to get court approval, occupancy costs would exceed their 1997 business plan by approximately $1.3 million, compared to exceeding it by only $300,000 with approval, Rosenthal said.
Barneys’ 1997 business plan, which assumed a relocation, provided for an estimated $1.7 million reduction in annual occupancy costs.
The new alterations and display facility would have one floor with easy access to a loading dock. The current shop occupies four floors and lacks a loading dock, while the display shop occupies three floors.