Bloomberg Law
Feb. 4, 2020, 8:53 PM

Bankrupt Barneys Gets Court OK for Plan Paying Fraction of Claims

Daniel Gill
Daniel Gill

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 ...

Learn more about Bloomberg Law or Log In to keep reading:

Learn About Bloomberg Law

AI-powered legal analytics, workflow tools and premium legal & business news.

Already a subscriber?

Log in to keep reading or access research tools.