MARIA: WELCOME BACK. WELL, BARNEY’S IS THE LATEST TO TAKE A HIT IN THE ONGOING RETAIL BATTLE FOR STORES TO STAY AFLOAT. SUSAN LEE IS COVERING THE STORY THIS MORNING.>>LET’S CALL IT THE RETAIL ICE AGE, MARIA. BARNEY’S IS FILING FOR BANKRUPTCY FOR A SECOND TIME. THEY HAVE 60 DAYS TO FIND A BUYER OR BARNEY’S LIQUIDATES. IT’S A SMALLER PLAYER THAN SAKS OR NIEMANN MARCUS. THEY OPERATE 13 DEPARTMENT STORES, NINE WAREHOUSES. IN THE 60 DAYS TO LOOK FOR A BUYER, THEY’LL KEEP OPEN SEVEN STORES INCLUDING THE FLAGSHIP HERE IN MANHATTAN. THEY WILL BE CLOSING IN CHICAGO AND LAS VEGAS AND SEATTLE. AND MARIA, WHAT BARNEY’S CITES THE REASON FOR BANKRUPTCY IS THE SAME REASONS WE’VE HEARD OVER AND OVER AGAIN BY BRICKS AND MORTARS, WHICH THEY HAVE EXTENSIVE RENT TO PAY, THEY’VE PAID DOUBLE THE RENT IN THE PAST YEAR, $27 MILLION, AND ALSO THE E-COMMERCE THREAT THAT COMES FROM HIGH END RETAILERS LIKE THE REAL REAL DOT-COM. IT’S A BLEMISH FOR RICHARD PERRY WHICH SAVED BARNEY’S FROM BANKRUPTCY IN 2012. HE SWAPPED DEBT TO BUY INTO BARNEY’S. MARIA: YOU WERE TALKING ABOUT REAL ESTATE AND RETAIL.>>A MAN IN HIS 20s LEARNED EARLY ON IF HE DIDN’T FIND WAYS TO CONTROL THE REAL ESTATE, WHERE STORES WERE, HE SAID YOU’RE IN DEEP TROUBLE. LANDLORD HOLDS ALL THE CARDS. MARIA: YOU’RE A HOSTAGE TO THE LANDLORD.>>THEY HOLD ALL THE CARDS. YOU’VE GOT TO CONTROL YOUR REAL ESTATE. DAGEN: THEY FOUGHT THAT RENT INCREASE. IT’S CLOSE TO $28 MILLION A YEAR THAT THEY’RE PAYING NOW ON THE MADISON AVENUE FLAGSHIP STORE. IT NEARLY DOUBLED FROM WHAT IT WAS. THEY WERE FIGHTING THAT IN ARBITRATION FOR SOME TIME. IF YOU HAD BEEN IN THE STORE OR KNEW ANYBODY WHO WORKED THERE, THE WRITING HAS BEEN ON THE WALL FOR WELL OVER A YEAR BECAUSE THE MERCHANDISE IN THE STORE WAS STEAL. YOU STU STALE. YOU WOULD HAVE THINGS THAT HAD BEEN ON SALE AT OTHER RETAILERS. THEY HAD CLEARED THE RACKS. THEY HAD LAST SEASON’S MERCHANDISE FROM A LOT OF MAJOR DESIGNERS. THEY WEREN’T SHIPPING TO THEM. THAT’S WHEN IT BECOMES A DOWNWARD SPY L RAIL FOR A LUXURY — SPIRAL FOR A LUXURY RETAILER. WHEN YOU DON’T HAVE THE LATEST, THE GREATEST, THE NEWEST FASHION IN THE STORE, THEN PEOPLE WILL STOP SHOPPING THERE. THERE IS A QUESTION WHETHER BARNEY’S AT THIS POINT WILL BE ABLE TO RECOVER. BECAUSE AGAIN, ITS ONLINE SHOPPING EXPERIENCE IS POOR COMPARED TO NETAPORTE. THEY DELIVER SAME DAY IN NEW YORK CITY. BARNEY’S IS NOT THE SAME EXPERIENCE.>>IF YOU KNOW YOUR BRANDS, YOU KNOW YOUR SIZES, IT’S EASY TO GO ONLINE.>>BARNEY’S HAS $100 MILLION IN ASSETS, $100 MILLION IN DEBT, A LOT OF THAT IS OWED TO DESIGNERS LIKE BURBERRY AND THE LIKE THAT THEY STILL OWE MONEY TO FOR THE MERCHANDISE THAT IS STILL IN THE SHOPS. ALSO, IT’S THE HIGH END DEPARTMENT STORE CHAINS THAT ARE CLOSING DOWN. I FEEL LIKE FIFTH AVENUE IS CHANGING QUITE DRAMATICALLY. HEN DRY HENRDRY HENRYRY HENRY BENDL SHUT DOWN LAST YEAR. BARNEY’S IS OPEN FOR NOW. MARIA: I WAS SORRY TO SEE BENDL’S GO.>>IT WAS A NEW YORK INSTITUTION.>>AT ONE POINT BY THE LIMITED, I THINK THEY OWNED BENDL AT ONE POINT. ONE THING THAT HURT BARNEY’S, NIEMANN MARCUS OWNSBURG NIEMANN MARCUS OWNS BRG NIEMANN MARCUS OWNS BERGDORF GOODMAN. A LOT OF PEOPLE WILL PULLED TO A LOCATION WITH A MORE STABLE COMPANY. IF YOU OFFER THEM — BARNEY’S CHANGED THE COMMISSION STRUCTURE IN THE LAST YEAR AND-A-HALF. THAT FORCED A LOT OF PEOPLE TO RETHINK WORKING THERE.>>WAS BARNEY’S JUST TOO SMALL AND HE NIEMANN MARCUS HAS THE MUSCLE TO SURVIVE. MARIA: IT HAS A LOT MORE SCALE. DAGEN: BARNEY’S HAD CHRONIC FINANCIAL PROBLEMS FOR THE LAST LITERALLY 20 YEARS. AND THEY’VE NEVER BEEN ABLE TO HE RESOLVE THEM. MARIA: WHY? BECAUSE OF THE RENT ISSUE.>>YEAH. BRICKS AND MORTARS, E-COMMERCE, I WANT TO NOTE THAT — MARIA: BARNEY’S IN PARTICULAR, IT HAS HAD PROBLEMS FOR A LONG TIME L REMEMBER THEY TIME.L REMEMBER THEY ER REMEMBER THEY USED TO HAVE A WAREHOUSE SALE, I USED TO LOVE THAT.>>DAGEN: OGEN: ONEN: DANEN: DAGEN: ONE OF THE BIG PROBLEMS WAS THE EVERY-EXPANSION, THEY GOT TOO BIG FOR THEIR BRITCHES.>>AMAZON IS RUMORED TO BE LOOKING AT LORD AND TAYLOR FOR ACTUAL FRONT STORE SPACE. MARIA: TALK ABOUT THE SIGN OF THE TIMES. AMAZON GOING BRICK AND MORTAR.>>DIFFERENT SHOPPING WORLD.>>AND THE REAL REAL WHICH HAS TAKEN OFF WHICH IS USED CLOTHING. IT’S $2,000 HANDBAGS.>>IT’S ENVIRONMENTALLY CONSCIOUS.>>AND RENT THE RUNWAY TOO. PEOPLE INSTEAD OF BUYING — MAYBE NOT AT BARNEY’S BUT INSTEAD OF SHOPPING FOR EVERYDAY WORK WARDROBES, THEY RENT IT.>>YOU DON’T HAVE TO OWN IT.