Luxury retailer Barneys New York could close all of its locations around the United States.
ABC7, in reporting on the development on Oct. 17, said the retailer initially said it would shutter some 15 stores and leave seven open.
However, all 22 stores may close, the station said. That includes the flagship store in Manhattan and one in Beverly Hills, California.
Fox5 New York, meanwhile, reported that the chain, which opened in 1923, will close if it can’t find a buyer by Thursday, Oct. 24.
“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,” said CEO Daniella Vitale.
Saks Fifth Avenue and Authentic Brands have said they could buy the Barneys name and other assets, it was reported.
Authentic Brands may choose to keep some stores open depending on the outcome of talks with landlords, the Wall Street Journal reported.
The deal is valued at approximately $271 million, and it would avoid a total liquidation, the WSJ also reported.
The firm filed for bankruptcy protection in August of this year. Court records were filed in the past week, ABC7 reported.
In elaborating, Barneys told the Fox affiliate station that the chain is now “working hard to achieve a successful sale process that will preserve the integrity of this incredible brand and ultimately benefit our employees, customers, vendors and other business partners.”
Any further bids must be received before an Oct. 22 deadline, Reuters reported, citing a court filing. In the absence of further bids by the deadline, the company will go ahead with the deal with Authentic Brands and B. Riley.
Several U.S. retailers have filed for bankruptcy over the past two years, including Forever 21 and Toys ‘R’ Us.
The fast-fashion retailer filed on Sept. 29 to restructure its business and requested approval to close up to 178 U.S. stores. Forever 21 listed both assets and liabilities in the range of $1 billion to $10 billion, according to the court filing.
The U.S. discount retailer in February filed for Chapter 11 bankruptcy protection for the second time, along with its North American subsidiaries. The retailer had said it would close about 2,500 stores in North America and wind down its e-commerce operations.
The toy retailer filed for Chapter 11 in September, hoping to restructure some $5 billion in debt, much of which stemmed from a $6.6 billion leveraged buyout by private equity firms in 2005. It liquidated in 2018, a blow to hundreds of toy makers that sold products to the chain, including Barbie maker Mattel Inc and rival Hasbro Inc.
The U.S. electronics chain filed for bankruptcy in March for the second time in a little over two years, faced with a challenging retail environment and an unsatisfying partnership with wireless provider Sprint Corp.
In September, the pharmacy and discount retailer said it filed for Chapter 11, months after the company began shuttering hundreds of unprofitable stores in the United States.
The children’s clothing retailer filed for bankruptcy protection in January, the second in almost two years, and said it would close more than 800 Gymboree and Crazy 8 stores.
The appliances and electronics retailer and its Gregg Appliances Inc unit filed for bankruptcy protection in March, as they continue struggling with declining sales for about the past four years.
Reuters contributed to this report.