Barneys New York won bankruptcy court approval of its Chapter 11 plan for winding down its estate and paying unsecured creditors a tiny fraction of their claims.
The high-end retailer used much of $271 million in asset sale proceeds to pay secured creditors who provided post-bankruptcy financing, according to the plan approved Tuesday by Judge Cecelia G. Morris of the U.S. Bankruptcy Court for the Southern District of New York.
Unsecured creditors will recover less than 1% of their $190 million in claims.
Barneys has closed 15 stores. The company and its creditors had hoped keep the historic brand in...