One of our favorite department stores, Barneys New York, was in trouble for quite some time, with rumors of bankruptcy floating about.
Barneys investor Ronald Burkle may have saved the day. According to a source, Burkle has bought a substantial part of the company’s secured term loan from Citigroup Inc. at about 60 cents on the dollar. He also bought a large amount of Barneys’ subordinated debt.
Mr. Burkle is not only finance savvy, but he has dealt with fashion companies before. He holds stake in Scoop, Sean John, and Zac Posen.
Chief Financial Officer Vince Phelan said Barneys is “seeing some positive changes in the economy,” due to the holiday shopping craze. “We’re cautiously optimistic about the fourth quarter,” said Phelan.
Don’t worry, Barneys. We’d be glad to help your cause by doing a little extra Christmas shopping from your stores, all in the name of the holiday spirits..