Barneys New York Inc. has tapped bankruptcy and restructuring lawyers at Kirkland & Ellis, reports The Wall Street Journal, regarding its debt situation. Barneys needs to refinance a $200 million credit line that comes due in September, according to The Journal article.
The luxury department store was taken over in 2007 by Istithmar World, the investment arm of state-owned Dubai World, which paid $942.3 million for Barneys. The new owners added an additional $500 million in debt. In early 2010, Istithmar invested another $20 million in the retailer, according to The Journal.
“Barneys New York is actively engaged in discussions with the company's small group of lenders to improve its balance sheet and position Barneys New York for sustainable, long-term growth and success,” a Barneys spokeswoman said in a statement. “We are focused on resolving this matter as expeditiously as possible, and it will remain business as usual at Barneys New York.”
Barneys New York operates 39 stores across the U.S.