Aug. 6 (UPI) -- Clothing retailer Barneys filed for Chapter 11 bankruptcy Tuesday after nearly a century of business.
Barneys secured $75 million from affiliates at Hilco Global and the Gordon Brothers Group to meet its financial commitments and continue operating a handful of locations.
"Like many in our industry, Barney's 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," Barneys CEO Daniella Vitale said in a statement.
Stores in Chicago, Las Vegas and Seattle will close along with several smaller concept stores. Seven Barneys Warehouse locations will also close.
The flagship locations in New York, Los Angeles, San Francisco and Boston will remain as will Barneys.com and BarneysWarehouse.com. The Barneys Warehouse locations in Woodbury Common and Livermoore will also stay open.
The filing will allow the company "to conduct a sale process, review our current leases and optimize our operations," Vitale said.
Barneys Warehouse is the latest traditional retailer to be upended by changing consumer habits and sky-high rents. The company has less cash to pay vendors, leaving it with out-of-season clothes or no product at all.
The company was founded in 1923 by Barney Pressman, who pawned his wife's engagement ring to pay for it. The store got its start in New York City.
Barneys filed for bankruptcy in 1996 so it could renegotiate with its Japanese owner, Isetan. The company dodged bankruptcy in 2012 after New York financier Richard Perry saved the company with a $540 million debt-for-equity swap.