Barneys New York Majority Owner Richard Perry is looking to sell part of the company. The hedge fund manager reportedly doesn’t want to put any more money into the business after opening a 58,000-square-foot Chelsea store. This comes after first-quarter, same-store sales dropped 10 percent from last year. Perry took control of the retailer in 2012 in a debt-for-equity swap amounting to $50 million. In addition, sources told the New York Post that Barneys CEO Mark Lee is looking to exit the company.
Total Retail’s Take: Luxury brands are having their fair share of trouble as of late. It’s expensive to stock Barneys’ luxury products and it’s about to become even more expensive to lease its brick-and-mortar store space on Madison Avenue. Barneys’ 20-year lease will end in 2019, and the new lease will skyrocket in price due to current market rates. An increased focus on digital may help this retailer stay afloat and profitable.