Barney's Bankrupt, Hudson Valley Store Spared

CENTRAL VALLEY, NY — The ritzy retailer Barneys New York has filed for bankruptcy and will shutter 15 stores across the U.S., the company announced Tuesday. The chain will keep its flagship stores plus the warehouse store in Woodbury Common.

It will shutter shops in Las Vegas, Seattle and Chicago along with five concept stores and seven other warehouse locations.

The storied firm indicated that high rents were partly to blame for its financial woes.

"Like many in our industry, Barneys New York's financial position has been dramatically impacted by the challenging retail environment and rent structures that are excessively high relative to market demand," Daniella Vitale, the firm's president and CEO, said in a statement.

The closings come as Barneys starts the Chapter 11 bankruptcy process in Manhattan federal court. Going through bankruptcy under court supervision will help the company pursue a sale while continuing to serve customers, Vitale said.

Barneys said it has locked down $75 million to help it meet its financial obligations from two financial services companies, Hilco International and the Gordon Brothers Group.

In addition to the warehouse store in the Hudson Valley, four Barneys stores will remain open in addition to its Madison Avenue and Chelsea locations, the company says: The flagships in Beverly Hills, San Francisco and Boston, and a warehouse store in Livermore, California.

By Noah Manskar, Patch Staff.