Barneys New York

Barneys New York's 2019 bankruptcy ended a luxury retail institution that had shaped American fashion for nearly a century. The store's Madison Avenue flagship was a fashion destination; its buyers influenced trends; its Co-op department pioneered accessible luxury. But Barneys couldn't survive the combination of high Manhattan rents, changing luxury consumption, and competition from online luxury retailers. The mechanism failure was cost structure mismatch. Barneys' Madison Avenue rent was $30 million annually—sustainable when the store generated proportional revenue, fatal when foot traffic declined. The store's experience (personal shoppers, curated selection, discovery) couldn't be replicated online, but customers increasingly researched at Barneys and bought at Net-a-Porter or directly from brands. This is showrooming as strategy failure—providing value that others capture. Barneys' attempts to franchise and expand licensing diluted the brand while generating insufficient revenue to cover flagship costs. The company filed bankruptcy with $200 million in debt; its IP was purchased by Authentic Brands Group, which licenses the name while the original stores closed. The Madison Avenue building became a mixed-use property. Barneys became another example of how high-rent retail formats struggle when foot traffic economics change.