Barneys New York Reportedly Preparing To File For Bankruptcy
As Forbes explained on Monday, this is not necessarily a bad thing for the retailer. It all depends on the type of bankruptcy. If it’s a reorganization, as opposed to a liquidation, there’s still hope for the future of the company. “Reorganization is where the creditors or a new investor take over ownership of the company and the existing debt is forgiven or repaid at a discount from the original loan amount,”
Forbes explains. “In a liquidation, the company is, well, liquidated and it ceases to exist.” Plus, this isn’t the first time that Barneys New York filed for bankruptcy. Previously, the brand filed Chapter 11 reorganization and the change was not obvious to customers.