What had once established its glorious reputation as a legacy folded its story in 2019 when Barneys New York filed for Chapter 11 bankruptcy. However, not all was lost during the hard times, and the luxury brand has returned with a different product line to appeal to today’s masses.
We’re talking about the ever-growing market for skincare products and the trending Korean skincare ingredients. Can this formula make Barneys New York a household name once again?
Why Had Barneys New York Gone Bankrupt?
There are numerous reasons Barneys New York has lost its previous position in the world of luxury fashion. The brand was already facing financial strains, and then other issues arose due to the changing customer behavior worldwide.
Barney Pressman founded Barneys New York in 1923 as a retail store featuring a wide range of men’s clothing and accessories. However, Pressman’s son Fred helped the brand make its way to high-end luxury fashion and become a benchmark for upcoming fashion stores.
Fast-forward a few years, and the brand was barely hanging by a thread as the store owners decided to expand their reach across the nation by renting properties for brick-and-mortar stores in major cities like Chicago and Boston. However, the luxury shopping scene in these cities was a world apart from New York City. However, it was too late for Barneys to get this insight and act on it.
In addition to all the hustle from expanding, the changing real estate landscape added to the financial strain on Barneys as the brand struggled to keep up with the exorbitant rents. Moreover, properties rented for warehouses also became a challenge since the investment didn’t translate into estimated profits.
The sudden surge of e-commerce that gave major retail stores a run for their money finally drove the nail in the wall for Barneys. Consumers loved the ease of buying to their heart’s desire at the expense of a single click. Barneys eventually caught up with the trend but not before the train had already left the station.
All the struggles stewed in a pot of what’s now known as Barneys New York’s decline as the luxury brand had lost its brand identity, not knowing a way forward. As the situation worsened, the brand filed for Chapter 11 bankruptcy.
What Happened After The Bankruptcy Filing?
Soon after Barneys New York filed for bankruptcy, Authentic Brands Group, a renowned brand management firm, took Barneys under its wing through acquisition. ABG promised to help Barneys New York rebrand and equip it with tools to survive today’s retail competition.
What’s Next In Line For Barneys New York?
True to their word, Authentic Brands Group has returned Barneys New York to the retail market with the most exciting twist, and customers are already jumping off their seats to jump on the new wagon.
Barneys New York is now a premium beauty brand known as Barneys New York Beauty, whose collection will be available in October 2022 for online purchase at barneys-beauty.com. The parent company has partnered with Gloent Group, a Korean contemporary lifestyle firm, to help with the Barneys rebrand. The partnership aims to make Barneys a comprehensive brand targeting the youth’s internal and external beauty and health with various premium products.
Gloent Group’s treasured formula for an antioxidant skincare complex made from cloudberries, Glocela, is the prime ingredient of Barneys New York Beauty’s skincare products range. The unique ingredient is known for slowing down the process of aging skin and hydrating the deep layers of skin to maintain its elasticity.
The premium beauty and skincare products line from Barneys New York Beauty is set to launch on the official website of Saks Fifth Avenue, a global luxury retail brand, in 2022. Things are looking upward for the luxury brand as it once again treads the familiar waters of retail with a beauty-full twist.
