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Barneys has gotten a lot of great press in the past couple months, thanks to some high-profile events like Daphne Guinness's window show and Lady Gaga's holiday workshop. But according to an in-depth look at the company in today's Women's Wear, the buzz hasn't yet translated into solid finances.
Yesterday, Barneys announced that it had hired law firm Kirkland & Ellis LLP to help renegotiate a $200 million loan due in September. That $200 million comes on top of $480 million in other debts due, respectively, in September 2014 and March 2016.
The store underwent a very public management overhaul when new CEO Mark Lee started back in 2010, and market sources contacted by WWD say that vendors are responding well to the new regime. The paper also hears that Barneys has been paying its bills—always a good sign.
A Barneys spokeswoman said the brand "is actively engaged in discussions with the company’s small group of lenders to improve its balance sheet," adding that "it will remain business as usual at Barneys New York." She also said 2011 was "a stellar year," although the store wouldn't comment on the success of Gaga's Workshop.
· Barneys New York Seen Under Pressure Again [WWD, subscription req'd]
· Barneys New York Still Struggling Financially, Prompts Bankruptcy Fears [Fashionista]
· All Barneys overhaul coverage [Racked NY]