Editor's Note: Below is a brief excerpt from our Retail analyst Brian McGough's morning note to customers "Hedgeye Retail Direct." If you would like information on how you can access our institutional research email sales@hedgeye.com.
Barneys is reportedly filing for Bankruptcy.
The U.S. chain of luxury department stores had been trying to sell itself to avoid Chapter 11. Meanwhile, Macy's, Nordstrom, Neiman Marcus, Amazon, Richemont, and Hudson's Bay have all apparently taken a look and decided to pass.
We’re just a couple bankruptcies shy of last year’s count, and were only halfway through summer. That while we’re still near the peak of a strong consumer, though it’s weakening on the margin.
As we see the consumer slow over the coming months, we expect to see more Ch. 11 filings. Barney’s has 22 stores, it will be closing 15 of them. It does not carry Coach or Michael Kors, but does carry Versace.
