Barneys New York

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Barneys New York
TypePrivate
IndustryRetail
Founded1923
HeadquartersNew York, New York, 5th Ave.
Number of locations40+
ProductsClothing, footwear, bedding, furniture, jewelry, beauty products, and housewares.
Owner(s)Perry Capital
Websitebarneys.com
 
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Barneys New York
TypePrivate
IndustryRetail
Founded1923
HeadquartersNew York, New York, 5th Ave.
Number of locations40+
ProductsClothing, footwear, bedding, furniture, jewelry, beauty products, and housewares.
Owner(s)Perry Capital
Websitebarneys.com

Barneys New York is an American chain of luxury department stores headquartered in New York City. The chain owns large stores in New York City, Beverly Hills, Boston, Chicago, San Francisco, Dallas, Las Vegas, and Scottsdale, and smaller stores in other locations across the United States.

Brands sold include Yves Saint Laurent, Christian Louboutin, The Row, Fendi, Givenchy, Marc Jacobs, Maison Martin Margiela, Lanvin, Balenciaga, Prada, Alexander Wang, Jil Sander, Manolo Blahnik, Thom Browne, Dries van Noten, Diane von Furstenberg, Bettanin & Venturi and Burberry Prorsum, as well as Barneys private label merchandise. The New York, Chicago, and Beverly Hills stores also have restaurants that are operated by third parties.

Contents

History

60th St flagship store

Pressman family ownership

The company began in 1923, when Barney Pressman opened his first store in Manhattan with $500 raised by pawning his wife's engagement ring in order to lease a 500-square-foot (46 m2) space at Seventh Avenue and West 17th Street in Manhattan with 20 ft (6 m) of frontage. Barney's Clothes was stocked with 40 brand name suits and a big sign with a slogan, "No Bunk, No Junk, No Imitations." Barney's sold clothing at discounted prices by purchasing showroom samples, retail overstocks, and manufacturers' closeouts at auctions and bankruptcy sales. It also offered free alterations and free parking to attract customers.

Barney Pressman claimed to be the first Manhattan retailer to use radio and television, beginning with "Calling All Men to Barney's" radio spots in the 1930s that parodied the introduction of the Dick Tracy show. He sponsored radio programs featuring Irish tenors and bands playing jigs to advertise Irish woolens. Women encased in barrels gave away matchbooks with the store name and address. He also chartered a boat to take 2,000 of his customers from Manhattan to Coney Island.

In a 1973 interview to Business Week, Fred Pressman became :"convinced that the discount route definitely was not for us. My father and I have always hated cheap goods.... I didn't want to sell low-end merchandise. Now, many of those who chose to are verging on bankruptcy." Fred Pressman's New York Times obituary stated, "With his father's blessing, Fred Pressman slowly transformed the store from a salty discount house that sold roast beef sandwiches in its pub to a purveyor of Italian designers with a cafe serving Perrier and light salads. He began to discard the types of suits that his father was prone to unearthing at auctions and bankruptcy sales, peppering the racks instead with then-obscure and top-name designers both, but continued to offer touches like free alterations that gave Barneys its reputation." Pressman is quoted saying, “The best value you can offer a customer is personal attention to every detail, and they will return again and again. Ultimately, the customer cares the most about how he or she is treated." Pressman died in July 1996.[1]

In 1970, Barney's built a fifth story onto their original building and a five-story addition. The original store was renamed America House and the addition was named International House. The expanded store occupied the entire Seventh Avenue block (between 16th and 17th streets), with 100,000 square feet (9,300 m2) of selling space and 20 individual shops.

International House, Fred Pressman promised, would feature complete collections of European designers, "from denim pants to $250 suits," not just a watered-down "potpourri of fabrics and models." The renovated America House, he said, would hold merchandise from "manufacturers who are in effect designers."

By 1973, the store was stocking 60,000 suits. It carried the full lines of designers such as Bill Blass, Pierre Cardin, Christian Dior, and Hubert de Givenchy. It became the first clothing store in the U.S. to stock the full line of Giorgio Armani, after signing an agreement in 1976. Barneys is widely credited to have introduced Giorgio Armani to the American Public.[2]

Women's clothing was introduced in 1976 on the third floor of the International House. The next year, the women's store relocated to The Penthouse, a new top-level enclosure. Barney's also added housewares, cosmetics, and gift departments to the store. Also in 1977, Barney's in-store restaurant was renamed The Cafe and began selling salads, soup, and sandwiches.

The apostrophe in Barney's was dropped in 1981. (The removal of the apostrophe would be short lived; it was reinserted around the end of the decade.) In 1981 the women's penthouse became a duplex. Barney's imported 80% of the women's and 40% of the men's merchandise. The $25 million, 70,000-square-foot (6,500 m2) women's store finally opened in 1986 in a row of six townhouses and two larger adjacent buildings across the store along 17th Street. The addition included a unisex beauty salon and restaurant, antiques, and accessories, gifts, and housewares departments. It accounted for about one-third of Barneys' sales of some $90 million the following year.

In 1988, Barneys opened a 10,000-square-foot (930 m2) men's store in the World Financial Center. In 1993, the store moved to the current 230,000-square-foot (21,000 m2), 9-story Manhattan store on Madison Avenue between East 60th and 61st streets. It was the largest new store in New York City since the Great Depression. The store is a 22-story building with 14 floors of offices above the store. The wood floors, a marble mosaic on the lobby floor, gold-leaf ceilings, and lacquered walls of the new Barney's store cost $267 million, according to one source.

Barney’s opened its first store outside of Manhattan in Beverly Hills, California in 1993. During this time, they also announced a national expansion of 30 smaller stores that range around 6,500 square feet[3]

1996 bankruptcy

The company filed for Chapter 11 Bankruptcy in 1996, closed stores in several locations across the US, and sold the department stores in Japan and Singapore[citation needed]. On December 20, 2004, the Pressman family sold its less than 2% remaining ownership to the Jones Apparel Group, which in turn sold the company in September 2007 to Dubai-based private equity firm Istithmar PJSC for $937.4 million.[4] Included in this purchase is an estimated $500 million in debt. "The luxury market took a sharp turn for the worse after Istithmar's acquisition of Barneys. U.S. sales of high end clothing, fragrances and accessories slipped 14% in 2009, according to Bain & Co. Although luxury was a star performer over the 2010 holiday season, spending trends have yet to recover to pre-recessionary levels. The privately held company doesn't reveal financial results but said that EBITDA rose by $30 million in 2010."[5] Howard Socol, Barney’s former CEO, resigned shortly after the change in ownership. The company failed to fill the position for over two years until Mark Lee was appointed in September 2010. Lee is the former chief executive of Gucci Group and has consulted and sat on the board of many other fashion companies.[6] Since Lee’s appointment, Barney’s has experienced changes in its staff, advertising, and website. Amanda Brooks, former creative director of Hogan, replaced long time fashion director, Julie Gilhart.[7] Lee’s former Gucci colleague, Daniella Vitale, replaced Judy Collinson as head merchant.[8] Former creative director Simon Doonan, now creative ambassador-at-large, was replaced by Dennis Freedman.[9] Barney’s advertisements and catalogs are usually shot in-house, but for Spring 2011 candid shots by art photographers such as William Klein, Nan Goldin and Juergen Teller were taken behind-the-scenes during Fashion Week. Some existing stores will face new renovations such as the in Madison Avenue location’s main floor and Co-Op levels. The traditional red awnings have been changed to black. Barney’s website has been revamped and has launched a new site called “The Window” which is the retailer's primary "social media landing page"—a window into the Barneys world, with news about fashion and happenings at Barneys stores.[10][11]

Perry Capital ownership

In May 2012, the majority of it was acquired by Perry Capital which reduced the company's $590 million debt to $50 million. It will have three seats on the seven-member board. The former majority owner Istithmar World as well as new investor Yucaipa Cos will also be on the board as will current CEO Mark Lee.[12]

Barneys New York flagship and regional stores

Barneys started opening locations outside of Manhattan around 1988. The first store outside the U.S. opened in Tokyo in late 1990.

Arizona

California

Illinois

Massachusetts

Nevada

New York

Texas

Barneys New York at NorthPark Center in Dallas
Barneys New York in Kobe

Washington

Barneys also has four department stores in Japan: two in Tokyo (located in Ginza and Shinjuku), one in Yokohama and one in Kobe, as well as a number of outlet stores throughout other cities in Japan. These stores are operated under license by the Sumitomo Corporation. Michael Celestino (BNY Sr VP) had denied rumors of upcoming stores in Europe, however on September 2, 2006, The Financial Times reported that Barneys New York will open its first company-operated European location in west London.[13] The store was to be an anchor in Westfield London, which was developed by Australian company, Westfield Group. However, this news came to nothing and Barney's never opened in London.

Barneys is set to open a fifth Japanese store in the city of Fukuoka in autumn 2011.

Barneys outlet stores

California

Connecticut

Florida

Hawaii

Massachusetts

New York

Texas

Virginia

Japan

Barneys CO-OP

Barneys CO-OP is designed for the younger market. It originally began as a department within the larger Barneys New York stores, but is now a freestanding store located throughout the US. CO-OP concept stores average 8,212 square feet (760 m2).

Arizona

California

Florida

Georgia

Illinois

Massachusetts

Maryland

Michigan

New Jersey

New York

Pennsylvania

Texas

Washington, D.C.

Controversy

The forthcoming opening of the Brooklyn, New York location has raised some concerns among members of the Park Slope Food Coop there regarding the use of the term "co-op" by a for-profit corporation. According to the general manager of the Food Coop, Barney's use of the term is a violation of the New York State Cooperative Corporations Law.[14]

As of February 2011, Barneys will no longer sell Prada with the exception of shoes and menswear because of disagreements concerning prices and inventory control. Prada wanted to lease a space, but control its own inventory and markdowns under a concession model. Barneys declined.[15]

References

  1. ^ "Barney's Fred Pressman, 73". The New York Times. http://articles.sun-sentinel.com/1996-07-15/news/9607140212_1_barney-pressman-fred-pressman-barneys-new-york. Retrieved 4 March 2011.
  2. ^ "Barney's Fred Pressman, 73". The New York Times. http://articles.sun-sentinel.com/1996-07-15/news/9607140212_1_barney-pressman-fred-pressman-barneys-new-york/2. Retrieved 4 March 2011.
  3. ^ "Company News; Barneys to Open California Store". The New York Times. 8 June 1989. http://www.nytimes.com/1989/06/08/business/company-news-barneys-to-open-california-store.html?src=pm. Retrieved 4 March 2011.
  4. ^ Jones New York 2007 Annual Report
  5. ^ Dodes, Rachel (5 February 2011). "Barneys, Prada in Tussle". Wall Street Journal. http://online.wsj.com/article/SB10001424052748704570104576124420342774508.html?KEYWORDS=barneys. Retrieved 4 March 2011.
  6. ^ Dodes, Rachel (24 August 2010). "Barneys Brings in Gucci Veteran". Wall Street Journal. Archived from the original on 26 January 2011. http://online.wsj.com/article/SB10001424052748703846604575447443045315982.html. Retrieved 4 March 2011.
  7. ^ Akhtar, Amina. "Amanda Brooks Named Fashion Director of Barneys New York". FashionEtc. http://fashionetc.com/news/retail/415-amanda-brooks-barneys-fashion-director. Retrieved 4 March 2011.
  8. ^ Dodes, Rachel (5 February 2011). "Barneys, Prada in Tussle". Wall Street Journal. http://online.wsj.com/article/SB10001424052748704570104576124420342774508.html?KEYWORDS=barneys. Retrieved 4 March 2011.
  9. ^ Akhtar, Amina. "Simon Doonan Out as Creative Director of Barneys New York". FashionEtc. http://www.fashionetc.com/news/retail/225-simon-doonan-out-as-creative-director-of-barneys-new-york. Retrieved 4 March 2011.
  10. ^ Dodes, Rachel (5 February 2011). "Barneys, Prad in Tussle". Wall Street Journal. http://online.wsj.com/article/SB10001424052748704570104576124420342774508.html?KEYWORDS=barneys. Retrieved 4 March 2011.
  11. ^ Horyn, Cathy (4 February 2011). "Barney's New Chief Explains Those Changes". The New York Times. http://runway.blogs.nytimes.com/2011/02/04/barneyss-new-chief-explains-those-changes/?scp=1&sq=barneys&st=cse. Retrieved 4 March 2011.
  12. ^ . http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/05/08/bloomberg_articlesM3NVYH6VDKJ001-M3POB.DTL.[dead link]
  13. ^ Pickard, Jim; Jonathan Birchall (2006-09-02), Barneys to open first London store, Financial Times, http://www.ukinvest.gov.uk/OurWorld/100269/en-GB.html
  14. ^ Stephen Brown, "Is the Barneys Co-op breaking the law — with its name?" The Brooklyn Paper, April 15, 2010
  15. ^ Dodes, Rachel (5 February 2011). "Barneys, Prada in Tussle". Wall Street Journal. http://online.wsj.com/article/SB10001424052748704570104576124420342774508.html?KEYWORDS=barneys. Retrieved 4 March 2011.

External links

Coordinates: 40°45′52″N 73°58′15″W / 40.764569°N 73.970698°W / 40.764569; -73.970698