U.S luxury department store Barneys New York files for bankruptcy

Barneys New York Inc

A U.S. luxury department store chain, Barneys New York Inc has just filed for bankruptcy protection.

The filing is a Chapter 11 bankruptcy protection from its creditors to restructure its business and pursue a sale of the company.

According to a Reuters News report which cited the New York Times, Barnes New York has reached a $75 million deal with Gordon Brothers and Hilco Global to help the company continue operating while it follows up with its bankruptcy proceedings with the courts.

According to its restructuring plan, the luxury chain store would close down 15 stores of its 22 stores.

Also, Reuters cited NYT that the store’s Madison Avenue store will stay open, and its nine-floor footprint will also remain the same