Luxury specialty retailer Barneys New York has received approval for all ‘First Day’ motions filed under Chapter 11 in the US Bankruptcy Court for the Southern District of New York.
As part of the proceedings, the retailer raised nearly $218m financing from investment firms Brigade Capital Management and B. Riley Financial.
The funding will be used to refinance all of the existing secured indebtedness of the retailer. It will replace the previously announced $75m agreement with affiliates of Hilco Global and the Gordon Brothers Group.
The court granted an interim approval for the retailer to access $75m of the $218m new financing with immediate effect.
The company will use the amount, along with operating cash flow, to meet its go-forward financial commitments and continue operations.
Barneys New York president and CEO Daniella Vitale said: “We are pleased to partner with Brigade Capital and B. Riley Financial, whose substantial financial commitment will better support Barneys New York as we continue to offer a unique customer experience, strengthen our relationships with our vendors and conduct a sale process to position Barneys New York for the long-term.
“This significantly enhanced financing commitment demonstrates the belief of Brigade Capital and B. Riley Financial in the value of the Barneys New York brand and business.
“We appreciate the prompt action by the court in approving our First Day motions and would like to thank our employees, vendors and customers for their continued support.”
Brigade Capital and B. Riley will support Barneys New York throughout its concern sale process.
Barneys New York will also continue to operate its five flagship locations in Madison Avenue, Downtown NYC, Beverly Hills, San Francisco and Copley Place in Boston, along with two Barneys Warehouse locations in Woodbury Common and Livermore to offer services, products and experiences to customers.
The company’s digital portfolios Barneys.com and BarneysWarehouse.com will continue to serve customers without disruption.
Kirkland & Ellis is currently serving as legal advisor, Houlihan Lokey as financial advisor and M-III Partners as restructuring advisor to Barneys New York.