Barneys Coming To Brooklyn?

BarneysHigh-end clothing store Barneys recently unloaded some of their financial woes and is considering opening up a store in Brooklyn.

Like every other store, Barneys has had to endure a ton of financial difficulties in the last year and lost a lot of money. They weren’t paying all of their pills on time, forcing their parent company, Istithmar, to pump $25 million into the chain, despite their own financial problems. However, last month, billionaire Ron Burkle proved his faith in the store by purchasing a huge chunk of their debt, despite the fact that he got it for 60 cents on the dollar.

Since then, bill collectors have been saying thing like “Barneys is paying us beautifully,” and store sales were up 7 percent in October alone.

The store has taken this as a hint that they should open up a new store in New York City within the next five years, and the chain has its eye on Atlantic Avenue in Cobble Hill, Brooklyn, for a new Co-Op outpost.

“Brooklyn is a logical move for them,” says Laura Pomerantz, a principal at PBS Realty.

Yet, not everyone is all that supportive of the move, Michael Appel, president of retail consulting firm Quest Turnaround Advisors says that, “They have to be careful. I don’t know if there are enough of those high-end luxury-forward customers out there.”

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