The luxury retailer Barneys has been on a hunt for a buyer or investor to provide a cash infusion.
Barneys had been seeking what’s known as debtor-in-possession financing, a special form of financing provided for companies in financial distress — usually so they can pay their operating expenses while restructuring their business through bankruptcy.
But the bank, Wells Fargo — which has already extended $200 million to Barneys through a term loan plus $50 million through a revolving line of credit — decided the financial risk wasn’t worth it, sources said. Without this financing, the storied retailer — which has been struggling since rent at its Madison Avenue flagship tripled in January — could be forced into liquidation.“There is all this last-minute desperation going on,” said a source with knowledge of Barneys’ financial situation
The Gotham Reporter 