Barneys New York

Barneys New York
Company type	Private (formerly)
Industry	Retail (luxury department store)
Founded	1923; 103 years ago
Founder	Barney Pressman
Defunct	2020 (retail operations)
Fate	Intellectual property acquired by Authentic Brands Group in 2019; physical stores closed
Headquarters	New York City, United States
Area served	United States, Japan (through license)
Key people	Barney Pressman (founder), Fred Pressman (former CEO), Mark Lee (former CEO), Daniella Vitale (former CEO)
Products	Apparel, footwear, accessories, housewares, cosmetics, gifts, beauty products (licensed)
Owner	Authentic Brands Group (since 2019)
Parent	Authentic Brands Group
Website	www.barneys.com

Barneys New York is a U.S.-based brand established in 1923 by Barney Pressman, which ran comprehensive department store operations until 2020. In 2019, Authentic Brands Group acquired the brand's intellectual property and subsequently licensed it to Saks Fifth Avenue for dedicated departments within their flagship outlets.

As of 2024, Barneys operates two specialty sections inside Saks Fifth Avenue’s flagship stores located in New York City and Greenwich. Moreover, a collaboration with Laox Holdings supports six independent stores and four outlet locations throughout Japan. The Barneys New York Beauty line, focusing on skincare and fragrances, is licensed to South Korea’s Gloent Group.

Barneys was instrumental in introducing luxury labels such as Armani, Azzedine Alaïa, Comme des Garçons, Christian Louboutin, and Zegna into the American retail landscape.

Early history

In 1923, Barney Pressman opened a men’s discount apparel shop on Seventh Avenue at West 17th Street in Manhattan, utilizing $500 raised by pawning his wife’s engagement ring. Barney's Clothes specialized in offering discounted designer suits by purchasing showroom samples, surplus stock, and merchandise from bankruptcies. To draw clientele, the store provided complimentary alterations and parking while gaining publicity through innovative marketing strategies such as radio advertisements and promotional events.

During the 1960s, Barney’s son, Fred Pressman, began steering the company away from discount retail toward high-end luxury. By 1973, Fred prioritized shifting the inventory from budget items to designer labels, elevating the brand’s prestige with personalized service and continuing free alterations. Under his guidance, Barney’s evolved into a key retailer of Italian designers and upscale merchandise, fueling growth and enhancing market position until his passing in 1996.

In 1970, Barney’s expanded its footprint to occupy an entire block on Seventh Avenue with 100,000 square feet split between America House and International House. International House showcased full European designer collections, while America House featured American designer manufacturers.

By 1973, Barney’s carried approximately 60,000 suits from designers including Bill Blass, Pierre Cardin, Christian Dior, and Hubert de Givenchy. The company secured exclusive U.S. distribution rights for the complete Giorgio Armani line in 1976, creating a significant competitive edge by introducing Armani to American consumers.

The women’s apparel department was launched in 1976 on International House’s third floor before relocating to The Penthouse level. The store broadened its product range by adding housewares, cosmetics, gifts, and revamping its restaurant into The Cafe with an upscale menu, improving the overall shopping experience and expanding its customer base.

Barney's to Barneys

In 1981, the brand officially removed the apostrophe from its name. That year saw the women’s penthouse transformed into a duplex space; Barneys sourced approximately 80% of women’s merchandise and 40% of men’s inventory internationally. A $25 million investment led to the opening of a 70,000-square-foot women’s store across 17th Street in 1986, featuring amenities such as a unisex beauty salon, dining options, antiques, accessories, gifts, and housewares. This location generated roughly one-third of Barneys’ $90 million sales in the subsequent year.

The company introduced a 10,000-square-foot men’s boutique at the World Financial Center in 1988. By 1993, Barneys relocated its flagship from Seventh Avenue to a newly constructed Madison Avenue store designed by Kohn Pedersen Fox at a cost of $267 million. This building spans 230,000 square feet over nine retail floors topped by 22 stories of office space featuring luxury finishes throughout.

In 1989, Barneys formed a joint holding company with Japanese retailer Isetan to operate stores across both nations. The first Tokyo location debuted in November 1990. Their expansion plan included investing $250 million to open approximately thirty smaller stores averaging around 6,500 square feet each; this began with a store in Costa Mesa, California in 1990.

Further growth outside Manhattan included launching stores in Chicago in 1993 and Beverly Hills in 1994.

1996 bankruptcy

In 1995, the Pressman family sought to merge Barneys' retail operations with Isetan's U.S. real estate holdings for flagship locations in New York, Chicago, and Beverly Hills under a single corporate entity. However, funds originally allocated for property development were diverted to BNY Licensing, a Pressman family enterprise controlling Barneys trademarks, in exchange for royalty rights linked to Isetan’s Japanese business—something Isetan was unaware of.

Perceiving this as a violation of trust, Isetan halted the consolidation process. Following counsel from legal and financial advisors, the Pressmans voluntarily initiated Chapter 11 bankruptcy proceedings in December 1995 to nullify the previous agreement and attempt renegotiation—a plan that ultimately proved unsuccessful.

The Chapter 11 filing was formally made in January 1996. During the bankruptcy period, several stores shuttered, including those in Cleveland, Costa Mesa, Dallas, Houston, and Short Hills. Subsequently, management reentered some markets by opening larger flagship outlets.

2000–2010

On December 20, 2004, the Pressman family divested its remaining interest (under 2%) to Jones Apparel Group, which later sold Barneys in September 2007 to Dubai-based private equity firm Istithmar PJSC for $937.4 million. This transaction included approximately $500 million in outstanding debt. Following Istithmar’s acquisition, the luxury sector experienced a steep decline; U.S. sales of premium apparel and accessories dropped by 14% in 2009. Although luxury consumption rebounded somewhat during the 2010 holiday season, it had not yet reached pre-recession figures. Barneys, operating as a private company, reported an EBITDA increase of $30 million in 2010.

2010–2019

After changes in ownership, CEO Howard Socol stepped down; the role remained unfilled until Mark Lee—former CEO of Gucci Group and a fashion industry board member—was appointed in September 2010. Lee implemented substantial reforms including workforce restructuring and marketing strategy overhauls. Amanda Brooks, previously creative director at Hogan, succeeded longtime fashion director Julie Gilhart; Daniella Vitale replaced Judy Collinson as head merchant; Dennis Freedman took over creative director duties from Simon Doonan.

Barneys updated its advertising tactics by featuring behind-the-scenes images from prominent photographers during New York Fashion Week. Store refurbishments included modernizing the Madison Avenue flagship store by substituting traditional red awnings with black ones. In 2011, Barneys introduced "The Window," a new website designed as a social media platform for brand-related news and events.

In early 2011, Barneys discontinued most Prada merchandise due to conflicts over pricing strategies and inventory control; Prada proposed a concession model involving leased space with inventory autonomy—a proposal Barneys rejected.

In May 2012, Perry Capital became majority owner, reducing Barneys' debt from $590 million to $50 million and obtaining three seats on the seven-member board alongside representatives from Istithmar World and Yucaipa Companies. Mark Lee continued as executive chairman.

By late 2013, Barneys announced plans to return to its original Seventh Avenue location vacated by bankrupt Loehmann's. In January 2014, the company embraced inclusivity by featuring transgender models in its advertising campaign.

Barneys reopened a four-story flagship store on Seventh Avenue in Chelsea in February 2016. Daniella Vitale was named CEO in February 2017, succeeding Mark Lee.

2019–present

On August 6, 2019, Barneys New York once again filed for bankruptcy protection. Subsequently, on October 25, 2019, Authentic Brands Group (ABG) purchased the company for $271.4 million. ABG discontinued all of Barneys' physical retail outlets, shifting focus towards reinventing the brand’s operational framework. The collaboration with Seven & I Holdings in Japan was preserved under ABG’s ownership.

On January 15, 2021, Saks Fifth Avenue unveiled a 54,000-square-foot Barneys at Saks section within its flagship store in New York City to continue showcasing emerging designers. Shortly thereafter, on January 25, Saks launched the inaugural standalone Barneys at Saks boutique occupying 14,000 square feet in Greenwich, Connecticut.

In 2022, Barneys New York Beauty was introduced by ABG under license from the Gloent Group, expanding the brand’s portfolio to include skincare and fragrance lines.

In April 2023, Seven & I Holdings divested its interest in Barneys New York Japan to Laox Holdings, which intends to broaden the brand’s presence throughout Asia.

By October 2024, Barneys became incorporated into Authentic Luxury Group, a joint venture between ABG and Saks Global. Expansion plans encompass apparel and home furnishings. Additionally, Barneys New York Residences—a hotel featuring ten units—opened in Tulum, Mexico during late 2024.

Stores

Prior to its acquisition by Authentic Brands Group for $271.4 million, Barneys New York operated 22 retail locations, including 12 Barney's Warehouse off-price outlets. Flagship stores were situated in key U.S. markets such as Las Vegas, Boston, Chicago, San Francisco, Seattle, Los Angeles, New York City, and Philadelphia. Select stores featured Freds restaurants integrated within Beverly Hills, Chicago, Madison Avenue (New York), Seventh Avenue (New York), and San Francisco locations. Following ABG's purchase, all physical stores were shuttered pending strategic business decisions.

In 2014, Barneys announced plans for a 53,000-square-foot flagship at Bal Harbour Shops in Florida scheduled to open in 2023. A standalone men’s store was launched in San Francisco in 2016 with intentions to add a restaurant by 2018. In 2019, Barneys revealed a new outlet at the American Dream Meadowlands complex in New Jersey—its sole location within that state.

January 2021 saw Saks Fifth Avenue introduce a 54,000-square-foot Barneys section on the fifth floor of its New York flagship and open the first standalone Barneys at Saks boutique in Greenwich, Connecticut (14,000 square feet). This marked Barneys’ reentry into retail through collaboration with Saks after bankruptcy proceedings.

A pop-up concept operated in New York City from September through October 2024 in partnership with Hourglass.

As of 2024, Barneys sustains six full-line and four outlet stores across Japan. In the United States, two store-within-a-store formats function inside Saks Fifth Avenue locations. Furthermore, a beauty and fragrance boutique operates in South Korea alongside several beauty counters within department stores across South Korea and Japan under the Barneys New York Japan brand.

Barneys New York CO-OP

Established in 1986 as a contemporary department inside Barneys’ flagship stores, Barneys New York CO-OP catered to younger consumers by offering trend-focused and more accessible merchandise. During the 2000s, it was spun off into an independent chain that grew to over twenty sites primarily located within malls and lifestyle centers. In 2013, the CO-OP label was retired as several outlets were transformed into boutique-style extensions of the flagship brand to support a refined upscale business approach.

Use of "Co-op" in name

When the Brooklyn CO-OP launched in 2010, the Park Slope Food Coop raised objections regarding Barneys's use of the term "co-op." They argued that a for-profit business employing this designation conflicted with New York State’s Cooperative Corporations Law.

Racial profiling

Barneys encountered intense criticism in 2013 following accusations against two African American shoppers who were suspected of using counterfeit debit cards after purchasing a $350 Ferragamo belt and a $2,500 Céline handbag. These events sparked allegations of racial profiling and intentions to pursue discrimination lawsuits.

Civil rights leader Al Sharpton called for a boycott, likening Barneys's conduct to the NYPD’s contentious stop-and-frisk approach. This controversy led to public pressure on Jay-Z, a rapper and entrepreneur partnered with Barneys, to end his association with the retailer. Jay-Z responded by advocating for decisions rooted in verified facts and subsequently confirmed his continued involvement, contingent on his appointment to a committee tasked with addressing racial profiling concerns.

In response, Barneys committed to enhancing charitable donations from proceeds of the BNY SCC collection to Jay-Z’s Shawn Carter Scholarship Foundation. Additionally, the company pledged to allocate 10% of its national retail sales on November 20, 2013, guaranteeing contributions totaling at least one million dollars—an example of effective crisis management combined with corporate social responsibility.

Live butterfly display

In 2018, Barneys featured live monarch butterflies in its Beverly Hills store to promote a new jewelry and accessories collection, encouraging customer engagement. However, PETA reported discovering several deceased and dying butterflies near the exhibit. Following this, Barneys prohibited live butterfly displays in future events and made a donation to PETA as an act of apology.

Labor issues

In 2015, Barneys engaged Kulture Consulting, LLC—a firm known for union opposition—to conduct "informational sessions" regarding unionization at various locations such as Beverly Hills, Chicago, Las Vegas, and San Francisco. Workers United in Chicago reported that management employed intimidation tactics during private meetings. Kulture Consulting was rehired in December 2018 to hold similar sessions at the Las Vegas store.

External links

Yotka, Steff (October 28, 2019). "'Barneys Started Our Career': Five New York Designers Remember the Department Store's Impact as Its Fate Hangs in Limbo". Vogue.
Crenshaw, Madeline (October 28, 2019). "A Look Back At Barneys, the Department Store that Broke the Rules of Retail". Footwear News.
Schneier, Matthew (October 2019). "What Went Wrong at Barneys? How a New York shopping paradise went big, then bankrupt". The Cut.